Remuneration to managerial personnel

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CA. Peeyush Sharma (Querist)
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26 April 2012 In context to one of my client Public Limited Company(in which all the share holders are relatives of the directors)having paid up capital of Rs. 68.21 lacs and Reserve of Rs. 315.90 Lacs, long term loans of Rs. 53.00 Lacs.

I want to Know whether schedule XIII of the companies act is applicable?
if yes, then what is the maximum limit of monthly Directors Remuneration?
Further, I want to know the as per part II of the schedule XIII of the Companies Act, what is the maximum monthly Sealing?

Kindly guide me in this matter.

Thanks in Advance

Ajay Mishra

Ajay Mishra (Expert)
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26 April 2012 Hi

Schedule XIII Part II Section I of the Companies Act, 1956 deal with a company having profit.
As per this : Subject to the provisions of section 198 and 309 a company having profits in a financial year may pay any remuneration, by way of salary, da, perquisites, commission and other allowances, which shall not exceed 5% of net profit for one such managerial person, and if there is more than one such managerial person, 10% of all of them together.

Regards

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