Is there a limit on the amount of salary (Remuneration) which can be paid to the director / directors in a Pvt Ltd company?
Its a family-owned PLC, not sure if that matters.
For example, if the PLC's profit (without director's salary) is 100.00. Can the director's salary be 100.00? This would mean Zero profit for the company.
Thanks
As Section 197 which deals with the remuneration of managing director or whole time director is not applicable on private limited company, so provisions of section 197 shall not apply. Remuneration to Director in private limited Company can be decided by passing the Board resolution in board meeting by deciding the fix remuneration plus perks if any.
In that case, if the PLC's profit (without director's salary) is 100.00. Can the director's salary be 100.00? This would mean Zero profit for the company?
There needs to be some fixed remuneration to be decided in Board Meeting and/or through letter of offer, remuneration can not be variable like profit or turnover of Company
CAclubindia
