Remuneration to Directors

14131 views 3 replies

Hi,

I just wanted to know if there is any ceiling on the total amount that can be paid as remuneration to Director of Private Ltd Company. Sec 309 of Companies act states that the maximum remuneration that can be paid is 5% of net profit. Just wantedsome clarity on this issue.

 

 

Replies (3)

yes director remuneration is 5% of net profit after adjustment of sec 309

As per sub section 9 of Sec 309, The provisions  shall not apply to a private company unless it is a subsidiary of a public company

There is no bar / ceiling on payment of Remuneration to Directors of a Pvt Ltd Co. as  Section 198, 309 are NA to PVT  Co.

How ever u need to check wether the Articles of Association authorise the Board or Members to approve  Remuneration.

 

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
22 June 2026
Accountant

Global Image Technologies Private Limited

New Delhi

MBA

View Details
Company
22 June 2026
Finance Manager- Chartered Accountant

Triveni Turbine Limited

Bengaluru

CA

View Details
Company
ARTICLESHIP 20 June 2026
Articleship

RB KESHRI & CO

Mumbai

B.Com

View Details
Company
12 June 2026
Accounts & Taxation Executive

Winshine Financial Services

Mumbai

CA Inter

View Details
Company
24 June 2026
Senior Account (VA Client Operations)

Karbon Business

Bengaluru

CA Inter

View Details
Company
ARTICLESHIP 30 June 2026
Article Assistant or Paid Assistant

VIKAS VERMA & CO

New Delhi

Others

View Details
Company
ARTICLESHIP 24 June 2026
ARTICLE ASSISTANT

BHUPINDER SHAH AND COMPANY

New Delhi

CA Inter

View Details
Company
10 June 2026
Senior Account Executive

JDS Advisory LLP

Ahmedabad

CA Inter

View Details