Maximum directors remuneration in pvt. ltd. company

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Querist : Anonymous

Querist : Anonymous (Querist)

06 February 2017 Dear Experts,
as per scheduled v where the effective capital is negative or less then 5 crore. the yearly remuneration payable limit is 60 Lakh. however the limit can be doubled if special resolution is passed by share holders,
my query is :- suppose if pvt. ltd company profit is 50 Lakh before directors remuneration and the effective capital is below 5 crore. then how much maximum remuneration can be paid to directors weather 60 lakh or 50 lakh,

pls clarify....

regds
Amit kumar

CS Mitesh Mehta

CS Mitesh Mehta (Expert)

06 February 2017 Section 197 of the Companies Act, 2013 which deals with remuneration payable to managerial personnel is applicable to public companies only and not applicable to private companies.

Querist : Anonymous

Querist : Anonymous (Querist)

06 February 2017 Dear Mitesh sir,
I kown sec 197 is not applicable to pvt. Companies howevet scheduled v is partly applicable. So my query was if the pvt. Company company has made the profit of 50 Lakh and the effective capital of company is less than 5 crore so in this scenario how much max remuneration this company can pay to its directors weather 60 Lakh as defined in scheduled v or 50 Lakh (company profit)

Please clarify....

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