Remuneration

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karan

karan (Querist)
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11 October 2012 Can a company pay remuneration to its managing director when its effective
capital is negative ?

Ajay Mishra

Ajay Mishra (Expert)
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11 October 2012 Hi

Yes.

Section 198, 309 and Schedule XIII are not mutually exclusive. If the company have adequate profit then the company will paid remuneration under Section I of Part II of Schedule XIII and in case of inadequate profit the company will pay remuneration as per Section II of Part II of Schedule XIII.

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