Remuneration payable to ned

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.

My query was whether NED could be paid remuneration by way of salaries? If they are paid salaries,they become employees of the Company.

My query was whether NED could be paid remuneration by way of salaries? If they are paid salaries,they become employees of the Company.

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.

You are absolutely right.