18 May 2009
do we have to take any approval if the directors voluntarily reduce their salary with effect from 01.04.2008 and refund the excess salary recieved thus far
20 May 2009
You need to check the language of resolution in which salary is defined by you.
For example:: if it is mentioned in the reolution that ""up to Rs. 20 Lac per annum"" then in that case no need to pass any resolution if directors voluntarily reduce their salary & draw Rs. 18 Lac per annuam.
Noting of directors voluntarily reduce their salary in the remuneration committee minutes would be a good option.
CAclubindia
