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Managerial remuneration

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This query is : Resolved

Rajya Lakshmi (Querist)
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31 May 2010 Dear Expert,

We have appointed our CEO as a Director who resigns his position as CEO and holds the position as Director for a shorter period let us say 3months.

We would like to pay the same remuneration which he used to draw as a CEO even though he is a director (please note that other directors are not paid any remuneration)

Please suggest me which is a good option to pay the remuneration - under Section 314 or 309 (sch XIII, 269 etc) as the remuneration is beyond 50000 pm and the company is a private limited company

Also give me the procedure checklist

Thanks in advance

Rasesh

Rasesh (Expert)
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01 June 2010 The best option would be to designate him as a wholetime director and pay him the remuneration that he was getting as an CEO. The company being an private limited company, there would be no limits on such remuneration.

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