Managerial Remuneration

In companies when the managerial remuneration is applicable?

1.Suppose the company has one full time director and the maximum limit is 11% of NP. Net   Profit is calculated at the end of the period(Say 1.4.to 31.03) . So only after the end of the year director will be given remuneration . For his work he will get remuneration at the end of 12 months.? whether any amount is paid during the year to the director other than the managerial remuneration ( Say for running his daily life how he will get money at the end of every month or so? ) and

2. Wat is the difference between director fees and managerial remuneration ?

Replies (2)

 manger remuneration calculated as per provisions of Companies act is the maximum amount that a company can pay.

There is nothing mentioned about when it is to be paid.

A director or manager can get remuneration on monthly basis but it can not exceed the amount so calculated.

1. Wholetime Directors Managerial Remuneration are paid as per the agreed terms of contract. SEc.309(3) of the Companies Act, mentios that Wholetime Director / Managing Director can be paid remuneration either by means of monthly payment or by means of commission or by both.

 

2. Sitting Fees if paid to the Executive directors would be termed as a managerial remuneration and would fall wihtin the ambit of manaerial remuneration and hence normally in practice, sitting fees is not paid to the executive directors.

3. Sitting fees paid to the non executive directors does not form part of the managerial remuneration limits pursuant to Sec.198(2) of the Companies Act, 1956.

trust yout queries have been clarified

 

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