IN CASE OF MORE THAN ONE MD OR WTD LIMIT GIVEN FOR 1 MD OR WTD IS APPLICABLE OR NOT
I MEAN TOTAL REMUNERATION AS DEFINED IF MAXIMUM 10%.
AND IN CASE OF ONLY 1 IT IS 5%.
THEN THIS 5% IS APPLICABLE AS PER PERSON LIMIT IF THERE ARE MORE THAN 1 OR NOT
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SECTION 197
Replies (5)
obviously no
As per the provisions of Section 197 of the Companies Act 2013 total remuneration payable by public Company to its directors including managing Director, Whole Time Director and manager shall not exceed 11% of the net profit of the Company agregate in the financial year.
if there is one managing or whole time Director then remuneration paid to such one managing or whole time shall not exceed 5% of the net profit of the Company.
But if there is more than one MD or Whole Time Director then remuneration paid to all such shall not exceed 10% of the net profit of the Company.
Further remuneration paid to other Director who are neither managing or whole time director then remuneration shall not exceed 1% of the net profit of the Company and 3% in any other case
THAT MEANS IF I HAVE 2 DIRECTORS ONE MD AND ONE WTD
THEN BIFURCATION CAN BE ANY PERCENTAGE SUBJECT TO TOTAL OF 10%
I MEAN IT CAN BE 9%+1%, 8%+2%.......etc.
THEN BIFURCATION CAN BE ANY PERCENTAGE SUBJECT TO TOTAL OF 10%
I MEAN IT CAN BE 9%+1%, 8%+2%.......etc.
yes it should be agregate of 10%
but payble to any one manager or one whole time director or managing director will not exceed 5%
am i right?
if yes than how can we pay 8 % or 9% to any one?
plz ansr
am i right?
if yes than how can we pay 8 % or 9% to any one?
plz ansr
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