Remuneration to Director from another comapny

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A director appointed to one company's board can indeed receive remuneration from another company. This is permissible under Section V of Part II of Schedule V, which allows a managerial person to draw pay from one or more companies. However, the total remuneration must not exceed the highest maximum limit allowed by any single company of which they are a director.

Jass Kaur Bindra SEC-C 2020

Jass Kaur Bindra SEC-C 2020 (Querist)
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12 December 2022 Whether a Director appointed to the Board of the company "X" can get remuneration from another Company "Y"?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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12 December 2022 Yes, he can get remuneration from another company.

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Jass Kaur Bindra SEC-C 2020

Jass Kaur Bindra SEC-C 2020 (Querist)
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12 December 2022 Thank You for your reply, if possible then please let me know that under which provision we can deduce the same?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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13 December 2022 Section V of Part II of Schedule V clearly provides that a managerial person shall draw remuneration from one or both companies, provided that the total remuneration drawn from the companies does not exceed the higher maximum limit admissible from any one of the companies of which he is a managerial person.

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