profit sharing in pvt ltd co
This query is : Resolved
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?
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?
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.
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.
So there is no limit in giving remmuneration to executive directors in a pvt co.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- ITR filing- non tax audit cases- Asstt.Year 2026-2027
- Soyabean hsn code and gst rate
- Treatment of Pension ?annuity returns on PMVY
- AY 26-27 ITR-4 FILING U/S 44-ADA
- Plot of land. Cost of Acquisition
- CA IPCC Registeration in 2012, Is my registration Active or Expired
- TDS related Query_Liquidated Damages
- NON- SUBMISSION OF LLP FORM 3
- Long Term Service award taxability in hands of company
- Last year TDS Claim
- Form 27Q Correction statement taking too long to update on IT Portal
- ITR selection for salaries and capital gain less than L
- Showing Gift from relative in ITR for this year
- Gst invoice numbering and delivery challan numbering
- Standard Deduction claim for EPFO Pension and ICICI Prudential Life Annuity
- Small dealers gst returns filing
- Sales amount in Gstr1
- CG after sale of flat
- E Commerce GSTR1 & 3B how to file
- GST Cancellation without jurisdiction
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
