Directors' Remuneration as per Comapnies Act, 1956
This query is : Resolved
Ashish Soni
(Querist)
23 February 2010
Dear Sir,
Whether in a Public Company Four whole time Directors can be paid monthely remuneration of Rs. 2 lac, Rs. 1 lac, Rs. 1 lac, Rs. 50,000/- respectively, when company has net profit of Rs. 1.20 crore in the year 2008-09?
If yes, how ?
If no, suggest the ways available to give above remuneration ?
your prompt response awaited.
Thanks & Regards,
Ashish Soni
CS Final Student
Whether in a Public Company Four whole time Directors can be paid monthely remuneration of Rs. 2 lac, Rs. 1 lac, Rs. 1 lac, Rs. 50,000/- respectively, when company has net profit of Rs. 1.20 crore in the year 2008-09?
If yes, how ?
If no, suggest the ways available to give above remuneration ?
your prompt response awaited.
Thanks & Regards,
Ashish Soni
CS Final Student
Ankur Garg
(Expert)
23 February 2010
Considering the profit of 1 crore 20 lakh--this is a case of inadequate profit.
You have to fulfill the conditions of sch XIII. Calculate your effective capital to figure out the correct table of remuneration given in sch XIII.
Also constitute the remuneration committee to approve the above desired remuneration.
Regards
You have to fulfill the conditions of sch XIII. Calculate your effective capital to figure out the correct table of remuneration given in sch XIII.
Also constitute the remuneration committee to approve the above desired remuneration.
Regards
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