Directors remuneration

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Can a private ltd pay remuneration to non-executive diretcor? Which section of the act is applicable ? Will this considered as RPT under Section 188 ?

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Yes, There is no restriction in paying remuneration to non executive director in a private company. This is not covered by Sec 188 becuase it is not a related party transaction. Kindly note that private companies are exempted from complying Sec 197(Overall Maximum Managerial Remuneration)

Regards,

Arjun Rajagopal


CCI Pro

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