Remuneration to Private company Director

This query is : Resolved

GBhura (Querist)
Follow

10 February 2011 Remuneration to Directors of private limited company governed by which section of Companies Act.Is there any monetary limitation.Is any approval of Central Govt. required.

Sunil Kr. Sanganeria

Sunil Kr. Sanganeria (Expert)
Follow

10 February 2011 Private limited companies are not subject to any limits on managerial remuneration. No Central Government approval is required

Message likes : 1 times

CA Sanat Pyne

CA Sanat Pyne (Expert)
Follow

10 February 2011 Sch. XIII is not applicable to Pvt. companies, hence there is no limit on extent of directors' remuneration.

its also not mandatory to pay any remuneration to directors and it can well be NIL (even for MD/WDs also)

Jayashree S Iyer

Jayashree S Iyer (Expert)
Follow

11 February 2011 Private Companies are free to fix the remuneration of its Directors. The limits specified in 198, 309, 310 and Schedule XII are not applicable to private companies.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Summarize this with AI

ChatGPT Perplexity Claude Google AI Grok