Under Section 197 Companies Act 2013, the overall maximum managerial remuneration payable by a PUBLIC COMPANY to its directors (including MD/WTD/Manager) in respect of any FINANCIAL YEAR shall not exceed:

1. Section 197(1) Companies Act 2013: 'The total managerial remuneration payable by a public company, to its directors, including managing director and whole-time director, and its manager in respect of any financial year shall NOT EXCEED ELEVEN PER CENT of the net profits of that company for that financial year computed in the manner laid down in section 198.' 2. Section 198 prescribes the manner of computing 'net profits' for the purposes of Section 197. 3. Sub-limits within the 11 per cent: 5% for MD/WTD; 10% if more than one; 1% for non-executive directors if there is MD/WTD, else 3%; sitting fees up to Rs 1 lakh per meeting under Rule 4 Companies (Appointment of MD) Rules. 4. Schedule V Part II prescribes remuneration in case of NO PROFITS or INADEQUATE PROFITS. 5. Hence option B is correct. _Source: Companies Act 2013 (Act 18 of 2013), Govt. of India MCA — Companies Act 2013, Section 197(1); Schedule V Part II_