I am working in a closely held public limited company. Our MD was recently re-appointed by the Board / Members for a period of 3 years with payment of remuneration. He will be holding office until the year 2011. The appointment and payment of remuneration was approved by Remuneration Committee, Board of Directors and Shareholders (at AGM) in compliance with the provisions of companies act, 1956.
Consequent to the economic slow down it has been proposed to reduce the salaries of all employees and staff by 10% wef January 2009. this also includes Managing Director.
Kindly clarify whether reduction in Managing Director remuneration requires approval of Board of Directors and Shareholders of the company.