Salary to executive director - private company

Hi All,

Can a private Company pay salary to a director who is not a KMP, but is an executive director???? Or company has to appoint him to WTD to pay salary. Confusion is, whether sec 196 apply to a private company or not???

Thanks

Replies (3)

Dear Shraya,

Section 196 and section 203 both are different and section 203 not applicable to private companies.

Yes section 196 applicable to private companies also and Managerial personnel appointed under section 196 can not be treated as KMP.

So, in this case no MR-1 is required? only his being executive director is sufficient to receive salary from the company?

Is it salary, so can easily pay to any director you want, here no need of appointment of MD or WTD unless you want to appoint them as MD or WTD.

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