19 September 2012
A COMPANY HAVE 6 DIRECTORS (OUT OF THEM 1 MD).
THE COMPANY FIXES THE REMUNERATION TO THE MANAGING DIRECTOR AT THE RATE NOT EXCEEDING 5% OF THE NET PROFIT OF THE COMPANY CALCULATED IN ACCORDANCE WITH THE PROVISIONS OF 349 AND 350 OF THE COMPANIES ACT, 1956
The total managerial remuneration payable by a public company to its directors or manager in respect of any financial year shall not exceed 11% of the net profit of the company for that financial year computed in manner laid down in section 198(1) of the Companies Act, 1956.
Remuneration payable to MD or WTD shall not exceed 5% of the net profit for one such director and if there is more than one such director, 10 % for all of them together.
The provision of managerial remuneration will not apply to private limited company.
CAclubindia
