Director remuneration in private limited co

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swati agrawal (Querist)

19 June 2012 As Director remuneration is governed by Articles for Pvt ltd co,article language is as follows:

Subject to the Provision of section 198.309,310 and 311 of the Act,MD /WTD ,shall in addition to the remuneration payable to him as a director of the company under the articles,receives such additional remuneration as may from time to time be sanctioned by the company.

I want to know whether remuneration can be more than the limits prescribed under above mentioned sections?

CS, Deepak Pratap Singh

CS, Deepak Pratap Singh (Expert)

19 June 2012 Dear Friend, you are right that the provisions of AOA of a private company governs its working. But in your case your MD/WTD can get excess payments as prescribed by passing a resolution in meeting of members. As articles reveals that as may be from time to time sanctioned by the company.

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