In pvt ltd company salary or remunaration what is applicable to the directors
This query is : Resolved
09 December 2021
Hi experts
In private limited company we have to pay directors remunaration or salary ? if we pay that what is the limitation of Pvt ltd company ?
In private limited company we have to pay directors remunaration or salary ? if we pay that what is the limitation of Pvt ltd company ?
09 December 2021
There is no limit on remuneration for Private Limited Companies, they can pay any amount of remuneration without complying with the provision of Section 197 and Schedule V of the Companies Act, 2013.
As per the provisions of Companies Act, 2013, the restriction under Section 197 and Section 198 shall apply only when managerial remuneration or remuneration paid by a public Company. Hence, any remuneration paid or payable by a private company to its director shall be out of purview of the above said section and shall not be counted for the purpose of maximum remuneration payable by the company.
As per the provisions of Companies Act, 2013, the restriction under Section 197 and Section 198 shall apply only when managerial remuneration or remuneration paid by a public Company. Hence, any remuneration paid or payable by a private company to its director shall be out of purview of the above said section and shall not be counted for the purpose of maximum remuneration payable by the company.
09 December 2021
OK Sir tq which can refered to me like salary or remunaration to the directors
09 December 2021
Directors do not take salaries but remunerations from the Company.
09 December 2021
ok sir tq so much for your replay
09 December 2021
Most Welcome ..
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