Whole time director - Excess remuneration

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Excess Payment [S. 309(5)]
A director cannot be paid anything beyond the limits specified in the Companies Act or within those limits which may be specified in the articles or in general body resolutions. A director cannot claim anything extra even on the ground that he has performed substantial extra services unless they qualify as professional services[31]. If any director has been paid in excess of the above limits, he shall hold the excess amount in trust for the company and shall be bound to refund it. The company shall not waive the recovery of any such sum. In the case of a shareholder-director who did no other work than merely holding the office of a director, a remuneration of Rs. 30,000 a week was viewed as excessive, the court saying that Rs. 10,000 a week has been considered reasonable in such cases, and that, therefore, the extra payment was ultra vires and recoverable by the company. { Halt Garage 1964 Ltd, Re, [1982] 3 All ER 1016}These restrictions do not apply to a private company, unless it is a subsidiary of a public company