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Increase in directors remuneration

VARSHA JAIN (company secretary) (82 Points)

12 December 2015

please let me know, we have to increase the remuneration of directors above 11%, the company is unlisted public company & has good profits .profits.please suggest whether ordinary or special resolution has to be passed and for how many years we can get permission for this increment?

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2 Replies

Hemant K (36 Points)
Replied 14 December 2015

Hi Varsha,

Pls. check the Articles for special or ordinary resolution . Refere sec.197 (4)

It can be for upto 5 years because that's the maximum permissible term at a time. Refer sec 196 (2).

regards

VARSHA JAIN (company secretary) (82 Points)
Replied 14 December 2015

DEAR SIR, THANKS FOR THE PROMPT REPLY.

BUT MY QUESTION WAS EXACTLY FOR PUBLIC COMPANY HAVING ENOUGH PROFITS, WE ARE INCREASING DIRECTORS REMUNERATION ABOVE 11% AND FOR THAT WE PASSED ORDINARY RESOLUTION AND FILE MR-2 FORM ONLY. IS THE ACTION CORRECT?

STATUS ON MCA NOW IS 'ASSIGNED'