Limit on director salary in a limited co.

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

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