311. Increase in remuneration of managing director on reappointment or appointment after Act to require Government sanction.— In the case of a public company, or a private company which is a subsidiary of a public company, if the terms of any re-appointment or appointment of a managing or whole-time director, made after the commencement of this Act, purport to increase or have the effect of increasing, whether directly or indirectly, the remuneration which the managing or whole-time director or the previous managing or whole-time director, as the case may be, was receiving immediately before such reappointment or appointment, the re-appointment or appointment and shall become void if, and insofar as it is disapproved by that Government shall not have any effect— (a) in cases where Schedule XIII is applicable, unless such increase is in accordance with the conditions specified in that Schedule; and (b) in any other case, unless it is approved by the Central Government.
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