Director remunertation

Dear Isha,

To reply to your query, we should know that whether your company is profit making company and what is effective capital?.

I request you to go through section 196 and 197 of the Companies Act, 2013 and rules made thereunder and Schedule V of the Companies Act, 2013

Dear  Prakash ji,

Thankyou sir for your reply..

Yes, our company is profit making but its profit is inadequate to give remuneration of 6 Director @ Rs. 3.5 Lac per month. So the Company cover under Section II of Part II of Schedule V. The effective capital of the Company come into the slab of 5-100 crore.

Sir one more thing i want to knw that i have to file MGT-14 form 2 times or one time if the company convene a board meeting on 1 April 2014 regarding calling EGM for director remuneration one MGT-14 for this and then for EGM. or i have to file only one MGT 14.

Thanks 

As per Rule 7 (2) of Companies (Appointment and Remuneration of Managerial Perssonel) Rule 2014, companies other than listed companies and subsidiary of listed company may without central goverment approval pay remuneration to its managerial personals in event of no profit or inadequte profits beyond ceiling specified under section II part II of schedule V subject to complying conditions mentioned under that rule.

Only one MGT 14 after approval of remuneration by members in general meeting by way of special resolution.