Does a Director who is acting as a Managing Director an employee of the company? If he is not available for service due to some personal reason, can the company pay him remuneration on a pro-rata basis? Or the company should pay full amount irrespective of his being available at work?
Is he entitled to avail all the benefits that an employee receives? Like Leaves, etc
Yes a Director, acting as a Managing Director is an employee of the company. Yes the company may pay him the remuneration on a pro-rata basis.
To know the status of other benefits available to MD please refer to the agreement with MD or resolution for his appointment.
Thanks Ankur, Resolution says that the company shall pay the director a monthly remuneration of Rs. XXXXX It does not give any further details. Also if the Managing Director is one of major shareholder's then how does it impact?
if d director is executive director den he is an employe of d company and wil get remuneration on prorata basis....and on d oder hand if he is an non executive director lyk our star icon say Amitabh bachchan or say sachin tendulkar....d will get full salary as mentioned in resolution irrespective of leave....!!!! i guess d concept is very much clear....i cn also provide the evidence of this fact.......
CAclubindia
