Managerial remuneration

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Vani.A

140 Points Posted on 02 May 2017

In X a public limited company, Mr.A, a Managing Director gets a remuneration of Rs.3 lakhs per month. Mr.A also gets Rs. 2 Lakhs per month as salary from a private limited company.

Should we include this salary of 2 lakhs to calculate managerial remuneration ceiling.

Kindly advise

Replies (5)

Law Aspire

563 Points Posted on 02 May 2017

You cannot pay remuneration from two companies. this is not lawful

Sudhir Todkar

CS Professional

632 Points Posted on 02 May 2017

The restrictions with regards to managerial remuneration contemplated under section 197 do not apply to INDEPENDENT Private company and Government company.

Directors of private company can be paid remuneration as per the provisions of articles..

Vani.A

140 Points Posted on 03 May 2017

Friends,

Mr.A is a managing director of a company and in other private limited company, Mr.A is not a director but getting salary under some designation.

Should that salary be included

SREENATH P.

Company secretary

107 Points Posted on 03 May 2017

From the query I understood that these two companies are independent companies. So what is the purpose of adding remuneration from both companies together?For computing ceiling under section 197,no need to add remuneration from multiple companies.

Sudhir Todkar

CS Professional

632 Points Posted on 03 May 2017

If that private company is a subsidiary company of that company then it's should be disclosed in the Board report. But in this case both are not associated so irrespective of his/her position in private company no need to include remuneration while computing his remuneration..