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Directors remuneration

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(Querist)
19 June 2012 in a public company, there is 1 MD, 1 WTD and 3 Non-executive directors. In the FY 2011-12 the company had a net profit of RS. 27 lacs. In the same year the company paid to its directors Rs. 13 lacs as remuneration. How can this violation be regulated?
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CS, Deepak Pratap Singh

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CS, Deepak Pratap Singh (Expert)
19 June 2012 Dear Friend according to provisions of sections 198, 269, 309 of the companies act, 1956 a company having more than one Managing Director/ Manager/ Whole Time director can not pay more that 10% of the profit as calculated according to the provisions of Section 350 of the act. Now in your case the excess payment made to the directors will be returnable or a special resolution will be passed at the meeting of members to increase remuneration to directors.
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SATABDI SEN GUPTA

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SATABDI SEN GUPTA (Querist)
19 June 2012 While calculating net profit for this purpose, should depreciation be deducted?
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