Director remunerarion

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A director can generally receive remuneration from two companies, even holding directorships in up to 20 companies simultaneously, including alternate directorships. However, if a director is an executive director (like a WTD or MD) in one company, they can only receive remuneration from that single company. For public limited companies, specific limits apply, such as those outlined in Schedule V, particularly concerning remuneration exceeding 11% of net profit.

Avijit Das

Avijit Das (Querist)

12 August 2021 can one director get remuneration from 2 company. please provide the section

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

12 August 2021 Yes.

Section 165(1) of the Act states that a person can hold the office of director simultaneously in 20 companies. The number of 20 companies includes the office of alternate directorship. A person cannot be a director in more than 20 companies at a given time. However, the maximum number of public companies in which a person can be a director simultaneously is 10

Avijit Das

Avijit Das (Querist)

12 August 2021 is there any limit? for this

CS Divesh Goyal

CS Divesh Goyal (Expert)

13 August 2021 Yes Director can get remuneration from two companies as part time non executive director.

CS Divesh Goyal

CS Divesh Goyal (Expert)

13 August 2021 But, if he is executive Director (WTD/MD) in any company then he can get remuneration only from one.

Avijit Das

Avijit Das (Querist)

13 August 2021 director remuneration can provide more than 11% for limited company. company paid up capitan 80lacs & profit 80 lacs

CS Divesh Goyal

CS Divesh Goyal (Expert)

13 August 2021 1. If it is private Company. There is no limit of remuneration to directors.

Avijit Das

Avijit Das (Querist)

13 August 2021 no sir, it is public ltd co

CS Divesh Goyal

CS Divesh Goyal (Expert)

16 August 2021 As it is public Company, If he is non executive director he can take remuneration from both companies upto limit of 197 or schedule V

Avijit Das

Avijit Das (Querist)

16 August 2021 any provision in company act for director remuneration more than 11% of net profit for public limited company. net profit 80 lacs & paid up capital 80 lacs

CS Divesh Goyal

CS Divesh Goyal (Expert)

06 September 2021 Check the Schedule V for payment of remuneration more than 11%.

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