NEW DELHI: Companies which have defaulted on payment of dues to banks will require their approval for managerial remuneration beyond a certain threshold, according to the government.
The approval will also be needed in case of defaults to public financial institution, non-convertible debenture (NCD) holders and other secured creditors.
The provision is part of the amendments to the Companies Act which were cleared by Parliament last month.
A few provisions of the amended Act, which were notified on January 3, have important bearing on the working of the Insolvency and Bankruptcy Code, 2016, an official release said today.
The Code provides for a market-determined and time-bound resolution of insolvency proceedings. Many…
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