Recovery of managerial remuneration in certain cases (Section 199 of the Companies Act, 2013) :
Section 199 of the Companies Act, 2013 provides for recovery of remuneration in certain cases. According to this section:
Without prejudice to any liability incurred under the provisions of this Act or any other law for the time being in force, where a company is required to re-state its financial statements due to fraud or non-compliance with any requirement under this Act and the rules made thereunder, the company shall recover from any past or present managing director or whole-time director or manager or Chief Executive Officer (by whatever name called) who, during the period for which the financial statements are required to be re-stated, received the remuneration (including stock option) in excess of what would have been payable to him as per restatement of financial statements.