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Director's remuneration

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Riswana EP

STUDENT

22 Points Posted on 20 July 2020

can remuneration be paid to directors of a private company un case of loss?

Replies (2)

Quick Summary

Directors of private limited companies can indeed be paid remuneration even if the company is experiencing a loss. Unlike some other company structures, private limited companies are not restricted by Section 197 regarding the amount of remuneration they can pay to directors. This means there's flexibility in how directors are compensated, regardless of the company's financial performance.

RAJA P M

"Do the Right Thing...!!!"

128157 Points Posted on 20 July 2020

Yes..., why not...?

Sagar Patel

Tax and Business Consultant

11616 Points Posted on 23 July 2020

There is no limit on remuneration for Private Limited Companies. They can pay any amount of remuneration without comply with provision of Section 197.