remuneration to director

the remuneration paid to Directors is subject to provisions of se 198,309 and schedule xiii of the campanies Act

               The term remuneration has not been defined in the Act

            Sec 198(1) lays down 11% of the net profit as the overall ceiling on the total managerial remunaeration payable by a public.....

       Sec 198 and 309 does bot apply to private company.But it will apply to private company which is subsidiary of public company

 entire povisions and schedule  xiii is not possible to write here .....................

                    It will be better to go through Company law Books.............

As per Section 309 :

• if there is only one managing director or one whole time director then maximum remuneration payable is 5% of Net Profit.
• If there is more than one managing director including whole time director then maximum remuneration payable to them overall is 10% of Net Profit.

Procedure for Calculation of Net Profit for the purpose of remuneration of Managing Director:

Profit as per P& L a/c                                xxxxxxx

Add: Items not deductible u/s Section 349 and 350

Less: deduction allowed u/s

is it necessary to file form 23 for appointment of Executive chairman, executive director and director and fixing their remuenration by ordinary resolution in AGM.

is this for a public company or private company or for both