Notification of Section 32 and 40 of Companies Amendment Act, 2020

Please see below the excerpt from the notification issued by MCA by notifying section 32 & 40 of Companies Amendment Act, 2020
1 Notification date 18.03.2021
2 Subject MCA notifies amendment in Section 149(9)  (Remuneration of Independent Director In case of absence or inadequate profits) & Section 197  (Overall Maximum Managerial Remuneration and Managerial Remuneration in Case of Absence or Inadequacy of Profits) of Companies Act 2013 by notifying section 32 & 40 of Companies Amendment Act, 2020
3 Effective date 18.03.2021
4 Applicability Non – Executive/ Independent Director
5  Brief description MCA notifies amendment in Section 149(9) (Remuneration of Independent Director In case of absence or inadequate profits) & 197 (Overall Maximum Managerial Remuneration and Managerial Remuneration in Case of Absence or Inadequacy of Profits) of Companies Act 2013 by notifying section 32 & 40 of Companies Amendment Act, 2020 32. Amendment of section 149. 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. Amendment of section 197.  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.
Notification is attached herewith for your ready reference & reading.