25 June 2012
There is no limit on Salary to be given to Director in Private Limited Company.
Further, In public Ltd there is different Scenario.
No Conditions are there in the Companies Act 1956 regarding Salaries to be given of a private Ltd Company's Directors except necessary resolutions and all.
One more thing i would like to share with you dear friend it is not necessary that every thing should be written in Act in itself.Look Generally Shareholders are the ultimately owners of the Company and as in private Limited no outside fund is involved then No Other authority has any problem while Pvt Ltd Company's are giving Crores of rs as Salary to any of its Directors.
But again that must be in the four Corner of Definition of salary meaning thereby not for any other professional or Consultancy fees.