DIrector remuneration

This query is : Resolved

Subhashchandra (Querist)
Follow

24 December 2010 whether the director has the inherent right to receive remuneration or he is entitled only if articles provide or by a ordinary resolution or by a special resolution where the articles so require.

please explain.

thanks in advance.

udit sharma

udit sharma (Expert)
Follow

24 December 2010 Hi...

Remuneration is the compensation for the services rendered. If a person proposed to be appointed as Director of the Company is willing to be so appointed then he can be appointed as Director of the Company without any remuneration.

Resolution passed for the appointment of Director should specify whether the Director so appointed will be entitled to any remuneration or not.

God Bless

Udit Sharma

Message likes : 1 times

Ajay Mishra

Ajay Mishra (Expert)
Follow

24 December 2010 Director has no inherent power to receive remuneration from the company unless it is authorised by its articles.

In case of private company the provisions of director remunerations of the Companies Act, 1956 will not apply, they will be paid as per their articles.

In case of public company, the provisions of section 309, 310, 311 read with Schedule XIII of the Companies Act apply to directors remuneration with companies articles.

Regards
CS Ajay Mishra

Message likes : 1 times

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now