Directors remuneration

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Querist : Anonymous

Querist : Anonymous (Querist)

09 October 2012 is there any any limit in remuneration to directors of a company like partnership firm?

kindly help me....

Ajay Mishra

Ajay Mishra (Expert)
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09 October 2012 Hi

Payment of Managerial Remuneration

The total managerial remuneration payable by a public company to its directors or manager in respect of any financial year shall not exceed 11% of the net profit of the company for that financial year computed in manner laid down in section 198(1) of the Companies Act, 1956.

Remuneration payable to MD or WTD shall not exceed 5% of the net profit for one such director and if there is more than one such director, 10 % for all of them together.

The provision of managerial remuneration will not apply to private limited company.

Regards
CS Ajay Mishra

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