Director's Remuneration

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Priya Sharma (Querist)

12 November 2010 Dear Expert

Please throw light on entire provisions of Directors remuneration.

If a wholetime managing director is appointed in a private company, then what all provisions should I go through?

Regards
Priya Sharma

CA Navin Jain

CA Navin Jain (Expert)

12 November 2010 PROVISION OF DIRECTORS REMUNERATION IS NOT APPLICABLE TO PRIVATE COMPANY

Priya Sharma

Priya Sharma (Querist)

12 November 2010 Thank you sir.But still may I know what if the Company is a Public limited Co., for my knowledge.

Regards
Priya Sharma

udit sharma

udit sharma (Expert)

12 November 2010 Hi priya.....

In my opinion u should go thorugh the provisions of section 198, 269 read with schedule xiii to the Act, 309,349 and 350 of the Companies Act, 1956.......

CA Navin Jain

CA Navin Jain (Expert)

12 November 2010 in the case of public company u need to go through all provision related to remuneration

Ajay Mishra

Ajay Mishra (Expert)

12 November 2010 Hi

The provisions of appointment and remuneration of MD/WTD is not apply to private company, it govern by their own articles.

In case of public company, the provisions of sections, 198, 269, 309, 310,311, 314 and 350 read with Schedule XIII of the Companies Act, deal with appointment and remuneration of MS/WTD.

Regards

udit sharma

udit sharma (Expert)

12 November 2010 Ajay Sir.....

How r u? I have a point to make in ur reply as above.....

All the sections as quoted by you are correct and paertains to Appointment and remunerations of Directors but section 314 pertains to Holding of Office/Place of Profit by Directors/Relatives and in my opinion this will not fit in the answer to the query posed by Priya as she is looking for the provisions pertaining to Director's remuneration...

With due regards

Udit Sharma

Ajay Mishra

Ajay Mishra (Expert)

12 November 2010 Dear Udit

Thanks for acknowledge for the section 314, I just replied on Ms. Priya queries "all provision related to remuneration".

Section 314 to be take into account to check whether a director are receiving any remuneration in company in other way.

I will also suggest you to follow the provisions of section 314 at the time of payment of remuneration giving to directors because any money given to a director for other services will cover under this section.

Regards

Ankur Garg

Ankur Garg (Expert)

12 November 2010 Priya,

For removal of all your doubts wud request you to download my file on Managerial Remuneration from the link below:

https://www.caclubindia.com/forum/ca-final-chapter-wise-law-notes-part-i-49657.asp

Thanks

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