How much remuneration is to be paid to all directors

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Querist : Anonymous

Querist : Anonymous (Querist)

07 February 2017 Dear Experts,
in public company there is 5 directors inclusive one sitting doirector.
Pls clarify How much maximum remuneration can be paid to all the 5 directors. What's its criteria?

Regards
Mohit Jain

Jatin Bajaj

Jatin Bajaj (Expert)

10 February 2017 According to section 197 of the companies act 2013 , the total managerial remuneration payable by the public Company to its Directors including Managing Director , whole Time Director and manager shall not exceed 11 % of the net profit of the Company . but these remuneration payable shall be exclusive of any sitting fees paid to Director.
The remuneration payable to any one managing or whole Time Director shall not exceed 5% of the net profit of the company and 10% of the net profit of the Company if there is more than 1 such Director.
however the remuneration payable to directors who are neither managing nor wholetime director shall not exceed 1% of the net profit if there is already managing or whole time director in the company and shall not exceed 3% of net profit of the Company if there is no managing or whole time Director

Querist : Anonymous

Querist : Anonymous (Querist)

11 February 2017 Dear Jatin sir,
Thanks for your valuable inputs.

Sir i am confused on this line :- the remuneration payable to any one MD or WTD shall not exceed 5% net profit of company and 10% of Net profit if there is more then 1 such director?

You are requested to clarify the above line with an example if possible?

Thanks In Advance........

Jatin Bajaj

Jatin Bajaj (Expert)

11 February 2017 it means that remuneration paid to single person , For Example Mr. A, Managing Director of the Company . The remuneration paid to him shall not exceed 5% of the net profit of the Company. Suppose There are whole time Directors in the Company. Say , Mr. x, y, and Z. SO remuneration paid to all the 3 directors in agregate shall not exceed 10% of the net profit of the Company

Querist : Anonymous

Querist : Anonymous (Querist)

13 February 2017 Sir,
Scheduled V deals with No profit and Inadequate. In if the company net profit is say 5 Lacs even in this scenario can we pay Rs. 60 Lacs remuneration to directors as specified in scheduled v

Please clarify.....

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