Sagar (AM) (123 Points)
24 February 2015Hi,
Ours is private company, we have two executive directors to whom we pay remuneration monthly. We have designated one of them as CEO some year back and file form 32 under companies act 1956. Will they be covered under WTD in companies act 2013 ? if yes , what are compliance we have to comply, request your expert advise please.
ANKIT SHAH
(CS)
(66 Points)
Replied 25 February 2015
Under Companies Act, 2013, there is no concept of KMP for the private limited companies. Your case is of private limited company where there is no need of CEO. Under Companies Act, 2013 an executive director consider as whole-time director. But concept of WTD not applicable to private companies so you no need to comply with Sec. 197 i.e. managerial remuneration.
I hopeI make your point clear.
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