sunil prakash jain (Sr.manager) (101 Points)
21 September 2011Private Limited Company can pay Commission irrespective of the ceiling to its non executive Director ?
Regards
Sunil
G.L.Subhramanian
(PCS)
(206 Points)
Replied 21 September 2011
Hi Sunil,
Section 309 is not applicable to a private company unless it is a subsidiary of a public company.
Therefore, the ceilings (upto 3% of net profit if there is no managing director or whole time director; upto 1% of net profit if there is managing director or whole time director) are not applicable.
Regards
Subbu
sunil prakash jain
(Sr.manager)
(101 Points)
Replied 21 September 2011
Thanks
I want to take view that as section 309 is not applicable to Pvt.Ltd.Company it means Pvt. Ltd.Co. can pay Commission to its Director irrespective of limit.
May I right
Regards
Sunil
CAclubindia
