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Director remuneration

Maniramya Vemula (student) (40 Points)

14 August 2019

Can a director claim remuneration from two companies and also quote relevant section number of the companies act.

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Jatin Bajaj (CS) (2928 Points)
Replied 16 August 2019

Yes, pursuant to section 197 of the Companies Act 2013, read with Section v of Schedule v, a Director can draw the remuneration from either that single company or from both the Companies but the remuneration payable shall not exceed the maximum limit of remuneration fixed in a particular Company.

For example: Mr. A is a Director in XYZ private Limited, he draws remuneration of Rs. 10 lakh. Now he can draw maximum agregate remuneration of not more than Rs. 10 lakh in both the Companies

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