(1) A company shall not pay to its managing agent, in respect of any financial year beginning at or after the commencement of this Act, by way of remuneration, whether in respect of his services as managing agent or in any other capacity, any sum in excess of ten per cent of the net profits of the company for that financial year.

(2) For the purposes of this section, any payment made by way of remuneration to any of the following persons shall be deemed to be included in the remuneration of the managing agent :-

(a) where the managing agent of the company is a firm, every partner in the firm;

(b) where the managing agent of the company is a public company, every director of that public company;

(c) where the managing agent of the company is a private company, every director and member of that private company.