The government is likely to exempt companies located in the special economic zones (SEZs) from the Companies Act provisions on appointment of senior managerial staff and their salary ceilings.
The board of approvals on SEZs is expected to submit a formal proposal for waiving the mandatory prior approval of the department of company affairs (DCA) on appointments of whole time directors and managing directors and their pay packages to the department shortly.
Preliminary discussions on the issue have already been held by the DCA. The department is learnt to be amenable to the suggestions. Top officials told Business Standard:
