Company separate legal entity

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A company is a separate legal entity from its directors. This means the company's finances are distinct from the directors' personal finances. Directors can grow their wealth through the company via salaries and dividends, especially if they hold significant shares. Director remuneration is often tied to the company's profitability, rather than a fixed percentage of turnover.

CA Parul Saxena

CA Parul Saxena (Querist)

28 October 2022 Directors existence is different from company..company has a separate legal entity...then how the Director's personal finances growth with the company...like Reliance..
Whether they keep remuneration on the basis of that? Like if turnover of a company is 250 crores and Rs.15 lakh per month as Directors'remuneration is decided?
Or there are any otherway of retrieving funds from company?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

28 October 2022 It's mainly from salary and dividend director's growth will be there with the company.
Directors hold majority shares.
Directors remuneration fixed based on the profit earned by the company.

CA Parul Saxena

CA Parul Saxena (Querist)

29 October 2022 OK...thank you sir for your reply

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

29 October 2022 You are welcome.......

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