Sect 309(5)
This query is : Open
15 December 2009
Dear Expert,
Please explain me the computation of Directors commission.
and my doubt is, that commission % is to be calculated on PBT or on net profit.
if so, is that % directly applied on the profits or not?
Please explain me the computation of Directors commission.
and my doubt is, that commission % is to be calculated on PBT or on net profit.
if so, is that % directly applied on the profits or not?
CS Pawan Kumar Baid
(Expert)
15 December 2009
Max Ceiling of Remuneration:
To MD, Whole time Director is 5%
If more then one then 10% (to all)
Non-executive directors (all)
1% (if company has MD/WTD)
3% (in other case)
Overall ceiling is 11% of net profit.
Net profit means net profit as determined as per sec 349, 350 of the Companies Act.
Remuneration includes any monthly,qtrly, yearly payment, rent free accomodation, other amenity free of charge, insurance etc.
Regards
cs pawan kumar baid
To MD, Whole time Director is 5%
If more then one then 10% (to all)
Non-executive directors (all)
1% (if company has MD/WTD)
3% (in other case)
Overall ceiling is 11% of net profit.
Net profit means net profit as determined as per sec 349, 350 of the Companies Act.
Remuneration includes any monthly,qtrly, yearly payment, rent free accomodation, other amenity free of charge, insurance etc.
Regards
cs pawan kumar baid
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