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Salary increase of md & chairman of pvt ltd company

03 October 2016

A Private Limited company has increased their salary of MD & Chairman in AGM and filed Special resolution in MGT-14, please advice is there any requirement of other forms.

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2 Replies

CA Rahul Mor (Chartered Accountant) (173 Points)
Replied 03 October 2016

please ensure that salary with in the limit of companies Act, otherwise you take premission of CG.

Muralidharan (Self Employed) (1034 Points)
Replied 19 October 2016

There is no ceiling in salary payable to Managing Directors of Private Limited Companies. The provisions of Section 197 read with Schedule V of the Act is not applicable to private limited companies. Section 197 starts with the words "the total managerial remuenration payable by a public company, to its directors".

with regards

Muralidharan