as per sec 197 remunaration will not exceed 11% of its profit
than this 11% is sum of all whol tim director and manager
or 11%each???
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remunaration of kmp
Replies (8)
all directors & manager taken together
Its overall remuneration of directors including MD/WTD/M.
Individually its 5% if there are only 1 MD or WTD or Manager otherwise if there are more than 2 the whole remuneration for managerial personal is 10℅
Its for whole including other directors 11% and not for each.
If we give 11% for each then the reserves of the comply will be nil and shareholders will not get any dividend..
Individually its 5% if there are only 1 MD or WTD or Manager otherwise if there are more than 2 the whole remuneration for managerial personal is 10℅
Its for whole including other directors 11% and not for each.
If we give 11% for each then the reserves of the comply will be nil and shareholders will not get any dividend..
is sec 197 applicable to private limited company? can we not give more than 11% with shareholders approval?
sec 197 not applicable to pvt co
a public co can give remuneration to its managerial person exceeding 11% of net profit with the approval of C.G
C.G. approval + GM approval both are requiered
thanks
11% limit is for sum of all the directors[executive and non-executive]
And by passing special resolution, company can pay more than 5% to individual executive director provided Remuneration shall not exceed 11% of the net profit u/s 198 of the CA, 2013
And by passing special resolution, company can pay more than 5% to individual executive director provided Remuneration shall not exceed 11% of the net profit u/s 198 of the CA, 2013
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