Managerial Remuneration

Others 480 views 2 replies

Amit D

Manager - Legal and Secretarial

32 Points Joined September 2010

Dear All,

1.A Public company have suffered a huge loss in a particular financial year due to some genuine reasons. Though Company' performance is revocering. Its profit of the company is inadequet to pay remuneration to its direcotrs for some years due to accumalation of loss. Company has obtain waiver of excess remuneration twice. Now reappointment of MD is due. Company wants to pay remuneration which is in exess of scedule XIII. is there other mode to remunerate the Direcotrs.

2. A Director can draw remuneration from more than 2 Companies.

Replies (2)

Ajay Mishra

Company Secretary

74352 Points Joined March 2009

In case of loss of insufficient profit, the company will pay remuneration to director in accordance with Section II of Part II of Schedule XIII of the Companies Act, 1956.

Yes, a company can draw remuneration from two companies, but the total remuneration drawn from companies does not exceed the higher maximum limit admissible from any one of the Companies of which he is managerial person.

Regards

Jagruti (CS)

Service

1953 Points Joined May 2008

Also you can pay him service fee which will not be include in remuneration provided you get CG approval for deciding whether , director do possess professional degree for remunerating him .