Remuneration payable to ned
ARUN KUMAR MAITRA (Practicing Company Secretary) (1016 Points)
17 November 2016
Can a non-executive director be paid remuneration by way of salary?
ARUN KUMAR MAITRA (Practicing Company Secretary) (1016 Points)
17 November 2016
CS Arjun Rajagopal
(B.com, ACS)
(1056 Points)
Replied 17 November 2016
Yes, he can be paid. If the Company is a public Company, maximum remuneration payable to NED is given below:-( Sec 197)
If the company has MD/WTD - 1% of net profits calcualted u/s 198
If the company has no MD/WTD - 3% of net profits calculated u/s198
Further, if the Company is a pvt company, not required to comply with Section 197.
ARUN KUMAR MAITRA
(Practicing Company Secretary)
(1016 Points)
Replied 17 November 2016
My query was whether NED could be paid remuneration by way of salaries? If they are paid salaries,they become employees of the Company.
ARUN KUMAR MAITRA
(Practicing Company Secretary)
(1016 Points)
Replied 17 November 2016
My query was whether NED could be paid remuneration by way of salaries? If they are paid salaries,they become employees of the Company.
CS Arjun Rajagopal
(B.com, ACS)
(1056 Points)
Replied 18 November 2016
Kindly ignore my previous post. NED's are entitled to remuneration only by way of sitting fees for attending board/committee meetings and profit related commission as approved by the members.
ARUN KUMAR MAITRA
(Practicing Company Secretary)
(1016 Points)
Replied 18 November 2016
You are absolutely right.
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