Directors remuneration u/s 198 & 199
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
17 July 2013
Hi
Our company is public limited company. We have paid remuneration to Managing Director more than 20% of company's profit.
Can any one advice that waht will be adverse implication due to this and what steps company should take in future for not viloting sec 198 of the companies act.
Our company is public limited company. We have paid remuneration to Managing Director more than 20% of company's profit.
Can any one advice that waht will be adverse implication due to this and what steps company should take in future for not viloting sec 198 of the companies act.
Ajay Mishra
(Expert)
18 July 2013
Hi
You can not pay remuneration more than 5% to MD without Central Government approval.
So please read section 198 with 309 of the Companies Act, 1956.
You can not pay remuneration more than 5% to MD without Central Government approval.
So please read section 198 with 309 of the Companies Act, 1956.
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