drawings by Directors

This query is : Resolved

Share Report Follow Query Ask a Query

CA. PABITRA MOHAN

CA. PABITRA MOHAN (Querist)
Follow

14 November 2008 Whether Directors can withdraw from the company? If yes in what way.

S.Srinivasaraghavan

S.Srinivasaraghavan (Expert)
Follow

14 November 2008 The directors can withdraw only what is due to the as per law, like sitting fees and remuneration.

CA. PABITRA MOHAN

CA. PABITRA MOHAN (Querist)
Follow

14 November 2008 ok... if a director draws money now n then from yhe co., how it can be treated?

CA. PABITRA MOHAN

CA. PABITRA MOHAN (Querist)
Follow

14 November 2008 If a director takes money from the company(pvt. co.) for his personal use but company has no obligation to pay him...

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
Follow

14 November 2008 Do you mean that the director has taken an advance from the company. If it is a profit making company question of deemed dividend will arise. Pl refer section 2(22)(e) of the income tax act,1961.

Tejpal Sheth

Tejpal Sheth (Expert)
Follow

15 November 2008 under the companies act, with ref to payment of remuneration, tehre is no limit but it must be approved by BOD or resolution or its article. Director can't withdraw remuneration beyond its limit or withdraw without contract. If they do so, they are require to refund it immediately otherwise they will be liable under companies act.