Maximum directors remuneration in pvt. ltd. company

This query is : Resolved

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)
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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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