SECTION 197

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HIMANSHU KANSAL

Student CA FINAL

219 Points Joined August 2015

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

Replies (5)

Dushyant Garg

48 Points Joined January 2018

obviously no

Jatin Bajaj

2932 Points Joined April 2016

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

HIMANSHU KANSAL

Student CA FINAL

219 Points Joined August 2015

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.

Jatin Bajaj

2932 Points Joined April 2016

yes it should be agregate of 10%

md shahadat

88 Points Joined June 2017

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