query on managerial remuneration apportionment
This query is : Resolved
SREE VIDHYA RAJU
(Querist)
17 September 2009
Mr. X is appointed as Manager under the Companies Act in Company A which is 83% subsidiary of Company B. Company A is a profit making company.
We want to appoint Mr. X as a director to look after day-to-day affairs of Company C which is a JV company with an Overseas Company and 51% subsidiary of Company D which in turn is a 100% subsidiary of Company B. Company C is not a profit making company. If appointed as a director of Company C; then Company A wishes to get reimbursed a part of salary of Mr. X from Company C. Mr. X will not draw remuneration from both the Company, but from one company only. The Company that pays remuneration wishes to get say 40% of the salary reimbursed as if Mr. X is on deputation from Company A to Company C.
How to go about this???? Will Company A show the entire salary as its managerial remuneration or is it that only 60% will be shown by Company A and 40% will have to be shown as managerial remuneration by Company C.
We want to appoint Mr. X as a director to look after day-to-day affairs of Company C which is a JV company with an Overseas Company and 51% subsidiary of Company D which in turn is a 100% subsidiary of Company B. Company C is not a profit making company. If appointed as a director of Company C; then Company A wishes to get reimbursed a part of salary of Mr. X from Company C. Mr. X will not draw remuneration from both the Company, but from one company only. The Company that pays remuneration wishes to get say 40% of the salary reimbursed as if Mr. X is on deputation from Company A to Company C.
How to go about this???? Will Company A show the entire salary as its managerial remuneration or is it that only 60% will be shown by Company A and 40% will have to be shown as managerial remuneration by Company C.
19 September 2009
This is very clear. Why company A would 100% of the salary. It would nether be true nor fair. the salary would have to be apportioned based on which company bears what % of his total salary.
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