Salary to non executive director?
This query is : Resolved
03 October 2013
Sir/Madam
Can salary be paid to A non-executive director of a Private limited company ?
Can salary be paid to A non-executive director of a Private limited company ?
03 October 2013
Hi
The provisions of Companies Act, 1956 and Schedule XIII deal with remuneration of director will not applicable to private limited company. Such provision is applicable only public company and its subsidiary.
The remuneration of directors of the private company is totally governed by their company articles. If the Company’s article permits to pay remuneration you can give remuneration without any restriction. For this you will pass a Board Resolution for payment of remuneration.
The provisions of Companies Act, 1956 and Schedule XIII deal with remuneration of director will not applicable to private limited company. Such provision is applicable only public company and its subsidiary.
The remuneration of directors of the private company is totally governed by their company articles. If the Company’s article permits to pay remuneration you can give remuneration without any restriction. For this you will pass a Board Resolution for payment of remuneration.
03 October 2013
Ok. Thanks !!
03 October 2013
My Pleasure........
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