ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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Craze for Foreign

December 20, 1969 The Burden of Directors FIRTH Sterling Steel's board has appointed I M Pai and K N Samant, two partners of the managing agents, Pax Corporation, as managing directors for 5 years from April 1, 1970, when the managing agency will be terminated. According to the terms of appointment, each of the managing directors will be entitled to a fixed salary of Rs 7,500 per month, plus perquisites, among which are rent-free furnished accommodation, use of company's car. medical expenses upto Rs 5,000 per annum, entertainment expense upto Rs 500 per month, and benefits of provident fund, gratuity, bonus, etc. An extraordinary meeting has been called on December 23 to seek shareholders' approval. Even if these terms are technically within the revised limit on managing directors' remuneration laid down by Government in November, the company's unsatisfactory financial position makes such terms questionable. Managing agents have so far been getting LETTERS TO EDITOR only the minimum remuneration of Rs 20,000 per annum because the company has been persistently in the red. The proposed terms for the two prospective managing directors will impose an annual burden of about Rs 3 lakhs on the young company which has yet to wipe off a considerable debit balance. At the same time, total expenditure by way of salaries, wages, contribution to ESI scheme and staff welfare expenses, incurred on all of the company's employees during the entire past year, amounted to only a little over Rs 5 lakhs.

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