The much awaited amendment in
schedule XIII which liberalize unlisted public limited companies towards making
payment to its Managerial person is finally in air vide Notification of the
Ministry of Corporate Affairs dated 8th February 2011. As a result of
the amendment in Schedule XIII, unlisted public limited companies, not being
subsidiary to listed companies are free to pay any remuneration to its
Managerial person, after compliance with the other conditions as specified in
Schedule XIII. The amendment is a much welcome move and would not only ease the
burden of numerous approval applications with the ministry but is also a boon
for closely held public companies which are now enabled to pay desired
remuneration to its Managerial persons.