Procedure for payment of salary to a director

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Guest

Dear friends,

I have the following doubt:

If I am a director of a newly formed Private Company,

I am Semiqualifed (PCC/CA Inter) and doing accounting works for the company.

I want to draw salary of about Rs.10,000 per month.

1. What are the procedures to be done?

2. Whether anything should be filed to MCA?

3. Whether any resolution is to be passed in this regard?

Please explain the above briefly.

Replies (5)

Sneha

Company Secretary

1594 Points Posted on 29 July 2013

In a private limited company, remuneration is paid in accordance with its articles. If articles allow this then you just need to pass a resolution at a Board Meeting for the same.

Gowtham

Student CA IPC / IPCC

119 Points Posted on 29 July 2013

You Have to Pass resoultion regarding the remuneration

Guest

Thanks Sneha and Gowtham...

Whether the said resolution has to be filed to Ministry..

Sneha

Company Secretary

1594 Points Posted on 29 July 2013

No, this resolution is not reqd to be filed

Guest

1. ONLY BOARD RESOLUTION IS SUFFICIENT

2. NO FILING WITH MCA

3. SAMPLE BOARD RESOLTION -

“RESOLVED THAT pursuant of the provisions of the Companies Act, 1956 (“the Act”), approval of the board of directors of the company be and is hereby accorded for the payment of salary to Mr. __________________ and Mrs. __________________ from October __________________ in such manner as the Board may determine from time to time and upto the extent of Rs. __________________ per month.”

“RESOLVED FURTHER THAT for the purpose of giving effect to this resolution, the Board be and is hereby authorised to take all actions and do all such deeds, matters and things, as it may in its absolute discretion deem necessary, proper or desirable and to settle any question, difficulty or doubt that may arise in this regard.”