Can a Director (of Pvt. Ltd. Co.) be paid escalated remuneration?
say for example : Rs. 1.00 lakh in 2005-06, Rs.1.50 lakhs in 2006-07 and again Rs. 1.00 lakh in 2007-08
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Change in Remmuneration to a Director
Replies (5)
Dear Sir
You can pay the director remuneration at any rate in the private limited company.The Auditors of the company will show under the head payment to sepecified person in the notes
Dear Raajasekar,
As per rules remuneration should be : -
REMUNERATION OF A DIRECTOR
1). Public Limited Company
2). Remuneration of MD / ED / WTD
i). Event of No Profit or Profit inadequate
ii). Law permits payment in excess of 5%, on a slab rate based on effective capital – Paid-up Capital + Reserves & Surplus + LT Loans (No WCL, OD etc) – (Investments + accumulated losses + preliminary exps not w/o.)
|
Less than Rs. 1 Crore (Effective Capital)
|
Rs. 75,000
|
|
More than 1 Less than Rs. 5 Crores
|
Rs. 1,00,000
|
|
More than 5 Less than Rs. 25 Crores
|
Rs. 1,25,000
|
|
More than 25 Less than Rs. 50 Crores
|
Rs.1,50,000
|
|
More than 50 Less than Rs. 100 Crores
|
Rs. 1,75,000
|
|
More than Rs. 100 Crores
|
Rs. 2,00,000
|
Hi Rajasekar Sir,
I totally agree with views of Sudhir Gautam sir, Scetion 269 does not apply to Private Limited Company which is not subsidiary of Public Company. Hence you can pay any amount of remunaration to Director
Yes you may pay escalated remuneration to director of a private company as there is no restriction in Law.
Regards
Thank you
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