Limit on director salary in a limited co.

Others 1146 views 6 replies

Hi ,  I have flg queries :-

[1] Is there any limit in director salary in a limited co ?

[2] Does increase in director salary require shareholders permission

[3] Does the change in director salary require to be informed to ROC immediately after change?

thanks,

vikash

9936699412

Replies (6)

Hello!

You can take the reference of Sec 198, 309, 310 and schedule XII of Co. Act. 

 

Regards

Nidhi

Sry, its schedule XIII...............that was jst a typing error

 

Answer to your quries are marked in Red.

Originally posted by : VIKASH


Hi ,  I have flg queries :-

[1] Is there any limit in director salary in a limited co ?

Yes. Refer to Sections 198, 309,310 and Schedule XIII of the Companies Act, 1956

[2] Does increase in director salary require shareholders permission

Yes. Section 310 & 311 read with Part III of Schedule XIII.

[3] Does the change in director salary require to be informed to ROC immediately after change?

Yes if it is a reappointment + increase, Form 25C is required to be filed as per Section 269.

 If it's only increase (during the tenure of the contract) I think it's not required.

thanks,

vikash

9936699412

Also attached please find a write up on managerial remuneration which may be useful to you.

Originally posted by : Jayashree S Iyer


[3] Does the change in director salary require to be informed to ROC immediately after change?
Yes if it is a reappointment + increase, Form 25C is required to be filed as per Section 269.
 If it's only increase (during the tenure of the contract) I think it's not required.
 

Dear Jayashree,

 

Yes, in case of only change in terms of payment form 25C is not required to be filed. However, in case of Special Resolution, form 23 is to be filed.

Thanks Ankur.


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