Hyderabad: The existing 11% cap on salaries of chief executives officers (CEOs) of companies has been removed in the new Companies Bill, 2009, corporate affairs minister Salman Khursheed said on Thursday.
Self-regulation: Corporate affairs minister Salman Khursheed says executives should think as responsible citizens. PIB
He said that the government has made this modification on its own. Salaries of the CEOs should be decided by shareholders, he added.
Khursheed, who inaugurated the 37th national convention of the Institute of Company Secretaries of India, said the new Bill, which was tabled in the Lok Sabha in August, was being examined by a parliamentary standing committee.
He, however, hinted that executives should think as responsible citizens before deciding on huge salaries.
Khursheed also said that the Serious Fraud Investigation Office (SFIO) will continue its probe into alleged corporate law violations by Satyam founder B. Ramalinga Raju, but other agencies would probe alleged violations in foreign exchange rules.
He added that foreign exchange violations would be probed by the Enforcement Directorate, revenue manipulations would be looked into by the income-tax department and other cases would be investigated by the Central Bureau of Investigation.
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 firms that are under scanner, he said.
Officials will periodically check on revenues, profits and other issues such as employees strength. The system will sound an alert if there is any abnormality in the records, he said. Firms that do not satisfy the parameters would be questioned and closely monitored to avert frauds.