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Quary regarding director's remuneration

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amit trivedi (Querist)
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21 March 2013 A Unlisted Public Company having Rs. 15 Lacs paid up Capital and Rs. 1,80,000 Reserves.
No other Long Term Borrowings.
Company has Net Profit of Rs. 83000/- as on the Balance Sheet Date of 31.03.2012.
Company wants to pay Remuneration to Three Directors Rs. 5,40,000/- p.a. each.
What is the procedure for the same.
Is It compulsory to have Central Govt. Permission?
Please answer my quary urgently.
Thanking you
my mail id is atrivedi13@yahoo.co.in

Ajay Mishra

Ajay Mishra (Expert)
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21 March 2013 Hi

No need to take CG approval. You take the benefit of Schedule XIII, dealing with payment of remuneration of director,in case of inadequate of profit of the company.

Go to the Section II (A) of Part II to Schedule XIII of the Companies Act, 1956.

amit trivedi

amit trivedi (Querist)
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21 March 2013 Thank you Sir.

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