profit sharing in pvt ltd co

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sathyam (Querist)
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24 November 2009 Dear Expert,

There are 4 member in a pvt co. Out of 4, 2 members are investors and another 2 members are working members. They want to share p&l equally. But the investors dont want to issue shares to the working members. How it can be dealt? Can the working members be given remuneration to the extent of 50% of profit? Is there any maximum limit in giving remuneration to executive directors in pvt co?

HUZAIFA HUSSAIN

HUZAIFA HUSSAIN (Expert)
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24 November 2009 Since it is a private limited company there is no restrictions on Directors remuneration. However it should be either fixed amount or percentage based on turnover, etc.

Sreedhar Atchutuni ACA,GradCWA

Sreedhar Atchutuni ACA,GradCWA (Expert)
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25 November 2009 Provisions of companies act regarding director's remmuneration does not apply to a private limited company.

So there is no limit in giving remmuneration to executive directors in a pvt co.

sathyam

sathyam (Querist)
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25 November 2009 Thank u experts for ur quick reply

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