Remuneartion to managing director

This query is : Resolved

Madhankumar (Querist)
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07 August 2011 please throw me a light on the following:

In a Pvt Ltd Company, MD has been paying remuneration which includes commission at the rate of 10% on the net profit as there is no restriction on the payment of remuneration to MD in a Pvt Co.

Few months back, the company was converted to Public Limited Co, but the remuneration to MD has not been revised as per section 269 r/w schedule XIII of the Act.

Returns has been filed for the financial year 2010-2011 in which the remuneration to MD was stated asap.

Is there any possibility to set it right without intervention of any disciplinary actions?

provided, the refund of remuneration by th edirector/waiver of remuneration by the company should not be the outcome/result.

Pls advise! Thanks in advance.

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
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08 August 2011 There must me an agreement between the company and the managing director for payment of his remuneration if that has expired then the new agreement has to be made and the payment should be as per the provision of 269. First you calculate the remuneration and then compare the same with 269 if it is more then there is a problem and you have to get it approved from the concerned authority.

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