FORM NO. 26
THE COMPANIES ACT, 1956

Nominal capital Rs. ……………………….. Registration No. of company …………………. State where registered……………….

Form of application to the Central Government for increasing the
remuneration of managing/whole-time director/manager

[Pursuant to sections 310, 311 and 388]

Details of application fee paid:
(a) Payment is made by (I) treasury Challan, (ii) demand draft.
(b) Treasury Challlan No./demand draft No. and date.
(c) Name of bank/treasury…………………………………….
(d) Fee paid …………………………………………Rs………..

PART A
1. Particulars of company (in block letters):
(a) Name of the company.
(b) Address of its registered office.
(c) Date of registration under the Companies Act, 1956.
(d) Date of issue of certificate of commencement of business.
(e) Nature of business.
(f) Whether the company is and deemed public limited company under section
43A Yea/No
If yes, date, from which it became deemed public limited company
2. (a) Management structure (list of directors/managing directors/Whole-time
directors ( in capital letters): Sl. No.Name Designation Nationality Date of appointment ( Managerial remuneration paid during the last three years to be stated separately for each director/managing director/whole-time director/manager)
(b) Effective capital on date as per latest audited balance sheet (as defined in Schedule XIII)(Rs. in thousands).
3. Effective capital as on
(i) Paid-up share capital ……………………………………………………….. share premium account ……………………………………………………….. Reserves and surplus ……………………………………………………….. Long-term loans which are repayable after one year ……………………………………………………….. Deposits ……………………………………………………….. Total ………………………………………………………..

Less:
(ii) Investments ……………………………………………………….. Accumulated losses ……………………………………………………….. Preliminary expenses not written off

………………………………………………………..
Total ………………………………………………………..
(i)-(ii) ………………………………………………………..

4. Working results of the company during last five years.

Financial parameters Year Turnover Net profit (as computed under section 198) Net profit as per profit and loss account Amount of dividend paid Rate of dividend declared

5. In the case of new companies, where the commercial production has not yet
commenced, please furnish project cost, the sources of finance and the
projections of turn over, net profits (as computed under section 198) for the next
three years.
6. Reasons for the loss/inadequacy of profit, if any.
7 Steps taken to improve the performance of the company, whether
BIFR/financial institution/bank has approved any scheme for the revival of the
company, if so, furnish details thereof and copy of the scheme.
8 Name and address of the present auditors of the company.

PART B

9. State precisely the proposal of the company for which approval of Central
Government is sought, inter alia, indicating the
following:
Name Designation Age Nationality Qualification Experience
(in No. of months)

(b) Present and proposed remuneration
(I) Present remuneration:
Salary Perquisites Commission Other
(specify)

Total % of net profits, if payable Date from which paid

(ii) Proposed remuneration
Salary Perquisites Commission Other
(specify)

Total % of net profits, if payable Date from which approved by the board/company

(c) Detailed justification for the proposed increase in remuneration.
10. Which clause(s) of Schedule XIII is/are not satisfied
due to which the present application is being made?
( Give full particulars.)
11. The names of newspapers in which notices under section 640B have been
published along with dates thereof
(enclose paper cutting).
12. (a) Whether a copy of the
application together with the
enclosures has been sent to the
Registrar of Companies pursuant to
rule 20A(i) of the Companies (Central
Government’s) General Rules and
Forms, 1956?

Yes/No.

(b) If yes, date of admission
13. The following documents are
enclosed:
(i) Certified copies of the annual
accounts together with directors and
auditor’s report for the last four
financial years.
(ii) Certified copies of the resolution
of board/shareholders.

(iii) Certified newspaper clipping of
notice published under section 640B
of the Act.

PART C

Application to the central Government for approval to the payment of
minimum remuneration or of remuneration or remuneration in excess of
the limits prescribed under section 198(4)/309 (3) of the act

[pursuant to section 198(4)/309(3)/387]

14. Whether the company proposed
to pay minimum remuneration in the
absence or inadequacy of profits or
remuneration in excess of the limits
prescribed under section
198(1)/309(3)?

Yes/No.

If so, please furnish details of
the proposal
(Enclose copies of the relevant
resolution).
(Separate application fees to be paid in respect of the application under Part
C. Please enclosed original copy of treasury challan/demand draft in favour of
pay and Account Officer, Department of Company Affairs, New Delhi, and
certified newspaper clippings of notices published under section 640B of the Act.)

DECLARATION

To the best of my knowledge and belief, the information given in this
application and its Annexures is correct and complete.

Signature………………………………….
Designation……………………………………

Dated this ……………………….. day of …………… 19