Remuneration / incentives to directors of private limited co
This query is : Resolved
11 July 2012
Kindly let me know the rule regarding limit of remuneration / incentives to directors of private limited company.
Ajay Mishra
(Expert)
11 July 2012
Hi
The provision of Companies Act, 1956 will not apply regarding remuneration paid to directors of private limited company. You are free to pay remuneration but subject to the approval of Articles of Association of the Company.
The provision of Companies Act, 1956 will not apply regarding remuneration paid to directors of private limited company. You are free to pay remuneration but subject to the approval of Articles of Association of the Company.
11 July 2012
Hello,
In that case, if we decide to give incentive (other than salary/remuneration)to directors, do we need to pass board resolution.
In that case, if we decide to give incentive (other than salary/remuneration)to directors, do we need to pass board resolution.
Ajay Mishra
(Expert)
11 July 2012
Hi
You can do so in Board Meeting, there is no restriction but subject to the provision of your company's articles.
You can do so in Board Meeting, there is no restriction but subject to the provision of your company's articles.
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