Remuneration to directors - private companies
This query is : Resolved
22 April 2015
Hi,
What are the provisions of the Companies Act 2013 regarding remuneration payment to Directors for private companies?
Please let me know the provisions & the relevant sections.
What are the provisions of the Companies Act 2013 regarding remuneration payment to Directors for private companies?
Please let me know the provisions & the relevant sections.
23 April 2015
Hi Asawari,
The Provisions of sec 197 relating to maximum remuneration are not applicable to the Managerial Personnel of the Private Limited Company, that is Managing Director, Wholetime Director, Manager. Though there is ambiguity in the proviso of this section, but the senior Professionals interpret it as not applicable. Please note that non executive Directors are not elegible for remuneration, except sitting fees for attending Board Meetings as per AOA.
The Provisions of sec 197 relating to maximum remuneration are not applicable to the Managerial Personnel of the Private Limited Company, that is Managing Director, Wholetime Director, Manager. Though there is ambiguity in the proviso of this section, but the senior Professionals interpret it as not applicable. Please note that non executive Directors are not elegible for remuneration, except sitting fees for attending Board Meetings as per AOA.
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23 April 2015
There is No Restriction relating to managerial remuneration for a Private Company
Check the provisions in AOA, if any of the Company for managerial remeuneration
Check the provisions in AOA, if any of the Company for managerial remeuneration
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