Commission to a non-executive director of a private limited
This query is : Resolved
VICKY SRIVASTAV
(Querist)
25 March 2013
Dear Friends,
Is Ceiling for Commission i.e. 1% of Net Profit or, 3% of Net Profit to a non-executive director of a Private limited Co. applicable or, not applicable?
Now, If, the above Ceiling is not applicable then , A private Limited Co. has esteemated Net profit for F.Y. 2012-13 is Rs. 6 Crores and said Co. given the Commission to a non-executive director i.e. Rs. 30,00,000/- (above 3% of N.P., and Co. have no M.D./W.D./Manager).
Is it Correct ? if Not Correct thn what should be Correct amounts of Commission ? Please advise.
Regards,
Vicky Srivastav
Is Ceiling for Commission i.e. 1% of Net Profit or, 3% of Net Profit to a non-executive director of a Private limited Co. applicable or, not applicable?
Now, If, the above Ceiling is not applicable then , A private Limited Co. has esteemated Net profit for F.Y. 2012-13 is Rs. 6 Crores and said Co. given the Commission to a non-executive director i.e. Rs. 30,00,000/- (above 3% of N.P., and Co. have no M.D./W.D./Manager).
Is it Correct ? if Not Correct thn what should be Correct amounts of Commission ? Please advise.
Regards,
Vicky Srivastav
Ajay Mishra
(Expert)
25 March 2013
Hi
The provisions of remunerations to directors of the Companies Act, 1956 will not applicable to private limited company. Its totally govern by their articles.
The provisions of remunerations to directors of the Companies Act, 1956 will not applicable to private limited company. Its totally govern by their articles.
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