Directors
This query is : Resolved
Deepak Rai
(Querist)
27 September 2013
Dear Sir,
Company can increase its directors salary by following section 310 of Companies Act, 1956 but if a company wants to reduce the salary of its Directors then what procedure it need to follow and what will be its implication on Company??
Regards
Deepak Rai
Company can increase its directors salary by following section 310 of Companies Act, 1956 but if a company wants to reduce the salary of its Directors then what procedure it need to follow and what will be its implication on Company??
Regards
Deepak Rai
Ajay Mishra
(Expert)
27 September 2013
Please confirm, your company is public limited or private limited.
Deepak Rai
(Querist)
27 September 2013
Its a private Limited.
Ajay Mishra
(Expert)
27 September 2013
The provisions of Companies Act, 1956 and Schedule XIII deal with remuneration of director will not applicable to private limited company. Such provision is applicable only public company and its subsidiary.
The remuneration of directors of the private company is totally governed by their company articles. If the Company’s article permits to pay remuneration with reduced amount, you can give remuneration without any restriction. For this you will pass a Board Resolution for payment of remuneration.
The remuneration of directors of the private company is totally governed by their company articles. If the Company’s article permits to pay remuneration with reduced amount, you can give remuneration without any restriction. For this you will pass a Board Resolution for payment of remuneration.
Deepak Rai
(Querist)
27 September 2013
thank you for your guidance Sir
Ajay Mishra
(Expert)
27 September 2013
My Pleasure........
Ankur Garg
(Expert)
27 September 2013
Agree with the opinion of expert.
Thanks
Thanks
Ankur Garg
(Expert)
27 September 2013
Even in public limited company there is no requirement to pass a formal resolution for decrease in remuneration.
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