Managerial remuneration

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Amit Kumar (Querist)

02 January 2010 Warm regards to everyone,
As per co.s act a pvt. ltd. co. is exempt from the managerial remuneration provisions that are applicable to public ltd. co.s. Can anyone tell me what is the procedure of fixing remuneration of M.D or the other directors in a pvt. ltd. co.

Ankur Garg

Ankur Garg (Expert)

04 January 2010 No specific procedure is required in a private company. Simply check your AOA for any provisions regarding managerial remuneration. In the absence of any contrary provision in the AOA you may fix the remuneration in the board meeting by passing a board resolution.

Best Regards

CA Vanesh Nadar

CA Vanesh Nadar (Expert)

04 January 2010 Hi Amit

You have already mentioned that the Pvt Ltd co is exempted from such ceiling of remuneration.

As such there is no matter of concern as far as the corporate law is concerned.

But, the matter to be kept in mind is that the Remuneration should be justifiable to the Income Tax Authorities taking into consideration the nature & size of the business.

As far as the taxing is concerned. There is no such tax evasion is possible as both the Directors & Company is taxed to the extend at the same rate.

I hope your quary has been resolved.

If any diff. be free to contact

With Warm Regards
M. Vanesh Kumar
CA Students - Expert Association

Amit Kumar

Amit Kumar (Querist)

04 January 2010 Ankur sir can u tell me whether the board approval is to be filed with ROC.

Ankur Garg

Ankur Garg (Expert)

04 January 2010 Nothing is required to be filed with ROC in this case.

Regards

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