Managerial Remuneration

Does managerial remuneration include Commission paid to Director?
Replies (2)
Quick Summary
This discussion clarifies whether commission paid to a director counts as managerial remuneration under the Companies Act, 2013. Based on the Act's definition of remuneration, it includes any money or equivalent for services rendered, thus encompassing commission. It also addresses Section 197(14), which clarifies that directors receiving commission from a company can still receive remuneration or commission from its holding or subsidiary companies, provided such payments are disclosed in the Board's report.

As per Companies Act, 2013 “remuneration” means any money or its equivalent given or passed to any person for services rendered by him and includes perquisites as defined under the Income-tax Act, 1961.

So, as per above it's include commission also.
So what's the relevance of this sec 197(14) - Subject to the provisions of this section, any director who is in receipt of any commission from the company and who is a managing or whole-time director of the company shall not be disqualified from receiving any remuneration or commission from any holding company or subsidiary company of such company subject to its disclosure by the company in the Board’s report

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