limit on Director salary in Private Limited Company

Thank you once again sir

So suppose a director is a director company A and also he does consultancy independently and does NOT get any remuneration from company A but from others outside would still section 314 apply ?

Income from consultancy from other companies would not comes under this ambit. Office or place of profit does not apply in this case because the Director is not obtain any thing from the company nor he occupies any lace of profit in the company in which he is a director.

Thanks for clarification Sir one more time.

Can a (Managing) director, apart from a director's salary(below 50000), raise invoices and get paid for the technical services that he/she has offered to the company ...?

Also is there a limit on the number of consultants(individual contractors) or their consulting charges a private ltd co. can utilise to grow... instead of recruiting employees, consultants with a variable/fixed pay can be deployed ...?

I request experts to have a look at my query in the experts section.

Loan from shareholders in a Private Limited

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The post of Managing Director and Manager are outside the purview of section 314.

However, if the relative of MD is appointed it will be treated as office or place of profit.

DEAR FRIEND

                             COMPANY ACT DONOT PROVIDE ANY RESTICTION ON PAYMENT OF SALARY OF  DRIECTORS OF A PVT. LTD COMPANY.

REGARD

CS NITIN

Hi All,

After reading the views of all regarding applicability of Section 314 on the payment of salary to the Director of a private Company, i like to draw your kind attention to the provisions of Section 314.

Mr.Ankur please note that the Approval of Central Government fr which u r asking i.e payment of salry to Director over and above 50000.Please read the provisions again there is no limit for payment of salry to Directors of Private Company only u have to pass Special Resolution for that.

The limit of 50000 applies to Relative of Directors and such other persons mentioned in sub-section 214(1B)

Dear Kamal,

You should first read the matter under which the reply was given and be clear before posting any comment.

Be very clear section 314 applies to the directors and the relatives and other persons defined therein.

Hello friends,

Can anyone pl provide m,e the draft of Board Resolution for paying remuneration to Director in Pvt. Company.Thanks in advance.

Regards

Preety

Hi Ankur

Our company is a Pvt Ltd ,We having 2 directors,they are also  the directors of other  2 Pvt Ltd company & parteners of  one other firm.If any limit  & law is applicable for the remunaration  under the C.Act &  If they are coming under the perview of Scetion 314 under C.Act.

Panicker

Manager.

Our Co. has 3 directors. Companies Nom. Cap is 30 lacs. Should we pay them Rs. 1,00,000/- per month each?

Regards,

Dulal Chatterjee

I would like to know the rules for remuneration to be given to the directors of a private limited company and also are there any other options of giving them incentives or commission.

Please let me know the same and whether the same can be done in between the year.

Regards,

Swetal Pandya

Dear Friends,

I have a query, whether a person studying in a higher education on regular basis may get salary as director remuneration from a pvt ltd company in which he is a director.

Pls reply.........

Dear Friends,

The provisions of section 269 read with section 198, 309 and other as applicable to Public Company are not applicable on the Private Company.

A Private Company can remunerate its directrs as it wants.. it just have to pass the Bord Resolution and approve the Remuneration of its Directors.. there is no limits as well.......