DIRECTOR REMUNERATION

Calculation of Direct Remuneration in Pvt ltd co. and Ltd comapny.

Replies (4)
Quick Summary
This discussion clarifies the calculation of director remuneration for private limited and limited companies in India, referencing Section 197 of the Companies Act 2013. It outlines the statutory limits based on the company's effective capital, with specific thresholds for different capital ranges. The remuneration is determined by a resolution passed at the Annual General Meeting (AGM) and can be a fixed amount or a percentage of book profit, whichever is higher, up to the prescribed limits.

300000 Rupees or 90% of book profit whichever is higher
balance book profit @ 60%
As per Resolution passed in AGM
The remuneration shall be paid to all the directors
in accordance with provision of section 197 of the companies act 2013
it's depends upon many factors
and the remuneration is fixed in the resolution
which is passed in the AGM meeting as per the companies act
maximum remneration of the directors are
if capital is
less than 5cr then 30 lakh
more than 5cr and less than 100 cr then 42lakh
more than 100 then 60 lakh
and other factors too include so read section 197 of company act
Sourav the que is for director remuneration not for partners remuneration.

Ayusmita is right.

Remuneration to Directors

(1)(2)(i) Negative or less than 5 crores60 Lakhs(ii) 5 crores and above but less than 100 crores84 Lakhs(iii) 100 crores and above but less than 250 crores120 Lakhs(iv) 250 crores and above120 lakhs plus 0.01% of the effective capital in excess of Rs. 250 crores

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