director remuneration

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

20 September 2010 can director remuneration be paid in the first year of a pvt ltd. co where, there is a loss in its Profit & Loss A/c ?

Ankur Garg

Ankur Garg (Expert)
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20 September 2010 Hello,

Strict provisions relating to managerial remuneration are not applicable to a private company. So a private company is free to give any remuneration to its directors subject to the provisions of its articles.

You are requested to check your article for any provisions regarding remuneration.

A private company can also give remuneration in case of loss.

Thanks

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