Remunaration to board of directors in pvt limited company

in pvt.ltd.co there no limit in remuneration...

Dear Jigna,

With regard to you query as per my knowledge I would like to submit that:-

1.There is no prescribed rules limiting the remuneration in a private limited company.

2. The maximum number of directorships cannot exceed 15.

3. Your husband cannot be a wholetime director in two or more companies.

Thanks & Regards

Amit Mishra

BSamrish & Co.

New Delhi

Thanks Amit,

As per your answer there is no prescribed rules limiting the remuneration but what if the company has not acheived its brek-even point, then in that case - his remunaration will be treated as his capital withdrawals and adjusted against the amount of his share of profit received by him at the end of the year or it will be treated as a pure remunaration apart from the amount received by him at the end of the year according to his capital contribution.

Oh.. i'm so confuse pls help me on this

Regards,

Jigna

Dear Jigna,

Please refer Sec 309 (9) which clearly states that there is no applicability of remuneration to a director of a Pvt Ltd Co.

Dear Amit,

There is no limit for directorhip to an individual if he is appointed as a director in Pvt Ltd Co.

Hello,

Provisions relating to managerial remuneration mentioned in section 198, 309 etc are not applicable to a private company. The same is applicable to all kind of directors on the board like MD, WTD etc.

So there is no restriction on the monthly remunaration paid to your husband from above private companies.

As per section 275 of the companies act a person can hold maximum 15 directorships at the same time. However as per section 278 directorship in private company is excluded from the above limit of 15 companies. So a person can hold any number of directorships in private company.

Regards

RG

agree with above....gud...

agree with above private limited company not limit in remuneraion

Agreed with,

there is no limit of  remuneraion in case of Pvt.Ltd

hello dear user

cn u say that if any pvt. ltd. co. is deemed to be a public co. then what procedure we have to follow whether all the law of public co. will apply for deemed public co.

DEAR EXPERTS,,

                I WOULD JUST LIKE TO REITERATE WHAT ALL YOU PROFESSIONALS HAVE SAID- PROVISIONS CONTAINED IN SEC.309 AND 198 DOES NOT APPLY TO PRIVATE COMPANY. HENCE DIRECTORS IN PRIVATE COMPANY ARE ELIGIBLE TO ANY AMOUNT OF REMUNERATION.

REGARDS..

TANVEER MD MASOOD

Can i take my 5 friends as directors  ?? (without any remuneration.

I am doing this only to build profile of my PVT LTD.

can these directors be employees in other companies ? do they have any problem ?

Gopi krishna 

Originally posted by : Tanveer Md Masood
	DEAR EXPERTS,,                 I WOULD JUST LIKE TO REITERATE WHAT ALL YOU PROFESSIONALS HAVE SAID- PROVISIONS CONTAINED IN SEC.309 AND 198 DOES NOT APPLY TO PRIVATE COMPANY. HENCE DIRECTORS IN PRIVATE COMPANY ARE ELIGIBLE TO ANY AMOUNT OF REMUNERATION. REGARDS.. TANVEER MD MASOOD

Dear Tanveer,

you are Right, even the concept of section 269 and schedule XIII are also not apply to Private Companies therefore, it is free to decide the remuneration of its directors.

 

Originally posted by : GOPI KRISHNA
	Can i take my 5 friends as directors  ?? (without any remuneration.   I am doing this only to build profile of my PVT LTD.   can these directors be employees in other companies ? do they have any problem ? Gopi krishna

Yes you can appoint them as Non Executive Directors without any salary.
 

Dear Members,

For Pvt Ltd Company, What are the Heads normally booked for Expenses Like

1. Interest on Loans

2. Directors remuneration

3. Dividend to Share capital

4. Depreciation

5. Rentals

6. Staff salary

7. All other expenses per company operation

Please include any more come to your mind

Thanks

Mahavir