The Ministry of Corporate Affairs (MCA) notifies the commencement date on which Section 32 and Section 40 of the Companies (Amendment) Act, 2020 will come into force i.e., March 18, 2021.
Sections 32 and 40 of the Companies (Amendment) Act, 2020 seeks to amend Section 149 and 197 of the Companies Act, 2013, respectively, dealing with remuneration of Independent Directors:
“32. In section 149 of the principal Act, in sub-section (9), the following proviso shall be inserted, namely: —”Provided that if a company has no profits or its profits are inadequate, an independent director may receive remuneration, exclusive of any fees payable under sub-section (5) of section 197, in accordance with the provisions of Schedule V”.
“40. In section 197 of the principal Act, in sub-section (3), after the words “whole-time director or manager,”, the words “or any other non-executive director, including an independent director” shall be inserted.”
*Tanvi Singh, Editorial Assistant has put this story together.