Remuneration

This query is : Resolved

Pankaj Arora (Querist)
Follow

06 May 2017 Mr A (executive director)drawing salary from ABC limited and PQR Pvt Ltd .. if we have to calculate maximum remuneration ceiling under companies act than we have to club salary drawn from ABC Limited and PQR Pvt Ltd together..??

Ankur Singhal

Ankur Singhal (Expert)
Follow

06 May 2017 Dear The limit for remuneration under companies act is on company, not on person. the limit applies on company basis.

Pankaj Arora

Pankaj Arora (Querist)
Follow

06 May 2017 okay, suppose abc limited can pay maximum remuneration to its director 50 Lakh according to effective capital. now we have to include the remuneration received by MR X from PQR limited also with 50 lakh ceiling under ABC ltd

Aashok Kumar Sharma

Aashok Kumar Sharma (Expert)
Follow

21 July 2025 Great question! Let me clarify:

Under the Companies Act, the remuneration ceiling is applied by each company individually, not on the total amount a director receives from multiple companies.

So, in your example:

ABC Limited has a maximum remuneration limit of ₹50 lakh for its directors based on its effective capital.

PQR Pvt Ltd will have its own separate limit based on its effective capital.

The ₹50 lakh ceiling applies only to the remuneration ABC Limited pays to Mr. A — it does not include salary Mr. A receives from PQR Pvt Ltd.

Summary:
Remuneration limits are per company, not aggregated across all companies where the director works.

So you do not club remuneration from different companies when calculating the maximum permissible remuneration ceiling under the Companies Act.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now