remuneration of director

1.If a person is director in more than one company then he can accept remuneration from one and professional fee from other company ?

2. If a pvt. company have only two directors can they get only professional fee for their services or they have to accept salary as Remuneration.
Replies (3)

There is no restrcition on drawing remuneration from more than one company. Both Salary and Remuneration can be accepted professional fees are paid the someone who has rendered Professional Services to the company in case Directors are providing such services over and above the employment agreement (for which they are drawing salary/remuneation) than even professional fees can be paid. You have to comply with the Companies Act and mention in the Directors agreement what all services are needed to be provided by Directors and Salary and Remuneration he agrees for.

Hope this clarifies

thanku so much

Director can draw the remuneration in more than one Company but it shall not be professional in nature.

Suppose Director X is drawing remuneration from Company A Rs. 10,000 , so he can draw remuneration from Company B maximum upto the limit of 10,000.

But if the Director is profeesional , then in such case if he is getting 5000 as professional fees, then such professional fees shall not be computed in remuneration of 11 percent.and he can draw it from other Company without any limit. But such remuneration drawn in professional capacity shall fall in perview of office or place of profit. So board resolution needs to be passed in Board Meeting.But if such remuneration in professional capacity exceeds 2,50,000 per month then ordinary resolution in general meeting needs to be passed

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