Remuneration to managing director
This query is : Resolved
Mulraj Patel
(Querist)
01 April 2016
what is the maximum amount of remuneration for director and managing director of a Pvt Ltd company ?
01 April 2016
No ceiling on Remuneration.
Reason :- Section 197 of Companies Act 2013 does not apply to private companies and with reference to Rule 7(2) of Companies (Appointment & Remuneration) Rules 2014 which states companies other than listed companies and subsidiary of listed companies may without Central Govt. approval pay remuneration even of no profit is available and beyond the ceiling.
Under notification dated June 5 2015 which expressly exempted private companies from Sec 196(4)
Reason :- Section 197 of Companies Act 2013 does not apply to private companies and with reference to Rule 7(2) of Companies (Appointment & Remuneration) Rules 2014 which states companies other than listed companies and subsidiary of listed companies may without Central Govt. approval pay remuneration even of no profit is available and beyond the ceiling.
Under notification dated June 5 2015 which expressly exempted private companies from Sec 196(4)
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