CEOs salary cap removed in new Companies Bill: Khurshid

Last Updated: Thursday, November 5, 2009 - 18:30

Hyderabad: The existing 11 per cent cap
on salaries of CEOs of corporates has been removed in the new
Companies Bill-2009.

Minister of State for Corporate Affairs Salman
Khurshid said today here that the government did not try to
control salaries of the CEOs as it should be decided by the
share holders.

The Union Minster, who inaugurated the 37th national
convention of Institute of Company Secretaries of India, said
the new Bill, which was tabled in the Lok Sabha in August, was
being examined by the Parliamentary Standing Committee.
He however hinted that the corporate executives should
think as responsible citizens before deciding on huge
salaries.

Everyone knows the prevailing economic conditions in
the world. Countries like USA and Japan are also reeling under
restrictions and are following austerity measures.

He refuted the reports that he was against fat
salaries for CEOs. He said that no company CEO approached the
government to request the removal of cap on their salaries. He
said the government itself felt the need to remove the cap.

He appreciated the reported salary cut by Mukhesh
Ambani, chairman, Reliance Industries Limited by 66 per cent.

‘SFIO will continue its probe on Satyam Computers’

The Serious Fraud Investigation
Office (SFIO) under the Ministry of Corporate Affairs will
continue its probe on Satyam Computers fraud.

Minister of State for Corporate Affairs, Salman
Khurshid today said, SFIOs investigation was limited to
probing the alleged violations of corporate laws by Ramalinga
Raju, then chairman of Satyam Computers and others.
He Refuted reports that the government had ordered
SFIO to stop investigation.

Foreign Exchange violations would be probed by the
Enforcement Directorate, Revenue manipulations would be looked
by the Income Tax department and other cases would be
investigated by the Central Bureau of Investigation (CBI), the
minister said.

The ministry had devised a system where the government
would be able to detect corporate frauds at an early stage, he
said.

There will be 15 warning parameters that would be
applied to companies which are under scanner, Khurshid said.

The officials will check periodically on revenues,
profits and other issues like employees strength. The system
will alert if there is any abnormality in records, the
minister said.

The companies which do not satisfy those parameters
would be questioned and closely monitored to avert
future frauds.

Bureau Report



First Published: Thursday, November 5, 2009 - 18:30

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