Increase in Directors Remuneration

Dear All,

Can increase in Director's Remuneration be decided in Board Meeting and laster on substantiated in next AGM.

Thanks

Hi

Yes, Remuneration Committee of the Board of Director decide the remuneration of director subject to the approval of shareholders.

Regards

Actually, In this case company is a Public Ltd Co having no Remuneration Committee.

Thanks

MD remuneration

If you have sufficiant profits and not suffering from inadequate profit or loss and proposed remuneration is under the limits mentioned u/s 309(3)  and (4) then there is no need to follow schedule XIII.

Please go through section 310.

Thanks for the elaborate reply.

In my case company is Public Limited Co (Unlisted) and does not "Remuneration Committee".

So, just with the decision of the Director will it suffice to pass the same in Board Meeting and later on get it substantiated in AGM.

Further, Director's salary which was increased has already been paid.

In XYZ LTd(Loss Making Company) MD has appointed by the board of Directors w.e.f form 14.05.2010 and remuneration committee has approvled the remuneration of Rs 8L p.a.,Further the resolution has been ratified in the AGM 30.09.2010. In the month of April 2011, remuneration committee has increased the remuneration of MD from 8L to Rs  9L.

Please suggest what all compliances are to be done? Do we need to file form 25c?

Thanks in Advance

Regards

Abhinav

Plz refer Schedule XIII for remuneration and as far as Form - 25C is concerned same is filed at the time of appointment of MD or WTD.

In my case company is Public Limited Co (Unlisted) and  there is a case of inadequecy of profit so, please suggest me the options for give maximum remuneration to the directors ( there is a no M.D and having 3 directors )

Hi

Read Part II and Part III of Schedule XIII of the Companies Act, 1956.

Regards