the company i'm doing an audit for is a close-ended public limited company. Do the rules of 11% celing on net profits prior to remuneration apply to the directors of such a company as well??
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Director's remuneration
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What is the maximum remuneration which can be paid to all the Directors? The maximum remuneration which can be paid to all the directors of the Company is
11% of the net profits of the Company.
What is the maximum remuneration which can be paid to all the non-whole time Directors? If the company has Managing Director or whole time director or a manager: - 1% of Net Profits If the company has no Managing Director or whole time director or a manager: - 3% of Net Profits Approvals Required -In order to pay remuneration by way of commission, a special resolution is required to be passed. -In order to pay such remuneration by way of a monthly, quarterly or annual payment the Company is required to obtain the approval of Central Government. -In order to pay the remuneration in excess of 1% or 3% (as mentioned above) to its directors: • A separate approval of the Central Government is required for paying such higher remuneration. • Such higher remuneration is authorised by the Company in its General Meeting. See file attach
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