Director Salary
This query is : Resolved
31 May 2010
Hi Expert,
Can you please let me know is it possible to book director remuneartion under head Salary & Wages A/c instead of Director Remuneration? below explanation is given by one expert for booking under salary & wages:
1.Director was inducted into board as a professional expert having regards to his Qualification, knowledge, experience, expertise as professional Director, without giving any other substantial power of management, which may be otherwise vested in any CMD, MD, Manager, WTD etc. He has no role in company board more than that. However he has all power more than that of a Sales & Marketing Head (with whatever name called).
2.Kindly appreciate the difference between Director in (a) whole time (or part time) Employment and (b) professional-Employee inducted into the board
Regards
Gaurav
Can you please let me know is it possible to book director remuneartion under head Salary & Wages A/c instead of Director Remuneration? below explanation is given by one expert for booking under salary & wages:
1.Director was inducted into board as a professional expert having regards to his Qualification, knowledge, experience, expertise as professional Director, without giving any other substantial power of management, which may be otherwise vested in any CMD, MD, Manager, WTD etc. He has no role in company board more than that. However he has all power more than that of a Sales & Marketing Head (with whatever name called).
2.Kindly appreciate the difference between Director in (a) whole time (or part time) Employment and (b) professional-Employee inducted into the board
Regards
Gaurav
01 June 2010
The resolution appointing such person on the Board should specify that he is not a wholetime director or MD and does not have any of such powers. Then only such justification will hold good.
In normal course, a person who is on the pay roll of the Company and is inducted on the Board, would be deemed to be a managerial personnel and the remuneration paid to such Director would attract the relevant provisions.
If a professional employee is inducted on the Board, he would be considered as an executive director whose remuneration has to be determined in accordance with the relevant provisions for managerial remuneration, unless the resolution appointing such director specifies that he is not empowered as a WTD or MD.
In normal course, a person who is on the pay roll of the Company and is inducted on the Board, would be deemed to be a managerial personnel and the remuneration paid to such Director would attract the relevant provisions.
If a professional employee is inducted on the Board, he would be considered as an executive director whose remuneration has to be determined in accordance with the relevant provisions for managerial remuneration, unless the resolution appointing such director specifies that he is not empowered as a WTD or MD.
01 June 2010
Also in such case, the provisions of Sec 314 will be attracted and have to be complied with.
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