Director salary

Dear Arpit,

Since 198,309 of the Companies Act, 1956 is not appliable for a Private Company. A private company can pay any amount of remuneration to its directors.

but can they pay any amount of salary to a director ?

Salary to Directors in case of private company is governed by the provisions of Articles of Association of the company.  If there is no restriction in Articles of Association then you can give any amount of salary.

Thanks

I agree with Ankur Sir.

But I feel there such be a genuine justification for payig salary more than that of its paid up capital.