limit of director's salary in ltd. Co.

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i want to know the limit & condition of director's salasry in ltd. Co..  

Replies (2)

Dear Sir,

Schedule XIII part II can act as a guiding principle for deciding overall limits for directors remunaration under The Comapnies Act ,1956 ; but I am also not very sure that term remunaration and salary can be used interchangably,I am also not very sure that there is no specific mention regarding this issue in any other law but surely schedule XIII will give overall idea rerding the issue  

Dear Saurabh,

kindly note that the remuneration to the executive dirs. is limited to max of 5% for one and 10% for more than one directors. However u may refer to other sections for the calculation of profit, as mentioned in the act. ( sec. 198/269,349,350,309)

in case of inadequacy of profit or loss in any financial yr. sch. XIII of the act. is to be referred. herein the criteria is the effective capital of the co. anc according to that the slabs of max. salary is mentioned, which shall cover all sorts of remuneraion excluding the statrutory deductions like PF.

yes, the terms salary and remuneration are confusing-but in my opinion they have the same meaning.

 


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