Section 25 company - salary to director

This query is : Resolved 

06 October 2012

If any Section 25 company wants to give its director reasonable amount of compensation / salary for serving the company in its activity, then what will be the right procedure to do so?

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If you don't mind, I believe that your company is fully capable to afford the fee for hiring of some local expert on the issues.

R.K Nanda (Expert)
Click to Talk
06 October 2012

contact a local lawyer.

Rajeev Kumar (Expert)
06 October 2012

Contact some reputed lawyer of your local jurisdiction

Rupak Ghosh (Querist)
07 October 2012

I m a CS student, it is a practical question, I need the answer. If you know plz reply, plz don't mind

Dear Rupak,

Your fresh clarification has caused several doubts about you, such as:

If you are a CS student, please state if you have falsely shown yourself in your profile, as a VP (Vice President) of the company?

Further, if you get academic practical questions solved by the experts here without making any effort by yourself to learn your course material, how would you be able to fare well in the examination hall during your examination time for the CS, and from whom you would seek help to solve your examination questions that time?

Still further, if you have started riding on crutches of ready made solutions to your academic questions without making any attempt to learn yourself, how you would be able to handle the corporate affairs independently when you are posted as independent Company Secretary?

prabhakar singh (Expert)
07 October 2012

A company constituted under section 25 of the
Companies Act is a company for charity to others and can not be run for profit and dividend.Accordingly it's directors(if promoters) can not be allowed or can claim salary but they can certainly be allowed with TA & DA and other expenses they incur on day to day carrying out the purpose of the company.

Rupak Ghosh (Querist)
07 October 2012

Mr Dhingra,I think you are not a social man, and very complicated type and required some counseling. plz don't spoil any discussion. If you don't know anything then plz stay away.

V R SHROFF (Expert)
07 October 2012

This expert team is not for answering academic query.
Mr. Dhingraji has rightly advised you to consult local lawyer, as u misrepresented u r VP: Now u says u r student.

We must know whom we are advising FREE, and he deserves it or not.

Earlier u asked for conversion of Co-op Society to Pvt. Ltd Co.

Pl ask personal legal problem faced by you to experts :

Otherwise don't waste Expert's time, it can be used for another deserving person. And don't comment on experts, You have no right to do so on this Public Platform.
Experts will not tolerate such insult of any of the Expert Team.

Don't ask experts to stay away, better you stay away.


Dear Rupak,

Your fresh post clearly reveals, since you did not find logical answers to my queries, I can well understand that you tried to give a clever diversion from wrong presentation of yourself as well as your own weaknesses and incapabilities, by labelling me with a tag of a non-social man.

However, I damn care what people, like you, think about me, while people who actually know me know well about me, my nature, my principles and my being fond of discipline. If I am treated as a non-social person simply because of exposing you about what your profile says and what you falsely tried to pose just to hoodwink the community members, I don't bother on that count.

But you have not clarified about yourself, whether you are a VP of the company or a student of CS? If you don't give clarifications, there would be sufficient cause not only me, but also for all others who have happened to see my questions on your false presentation, and your evasive reply thereto.

Also, you are welcome, if you prove that my queries to you have no relevance, if you are a student of CS.

Rather, I would like to pose another question now also, what would be your position when posted as a Company Secretary, if during some board meeting, the board tends to seek some spot clarification from you about provisions of company law while giving thought over some resolution to pass? At that time, would you tell them that to wait till you get help from the community members of the LCI?

Better think on these situations before you brand me with some more damn things you like.

Rupak Ghosh (Querist)
07 October 2012

Mr PS Dhingra, What I said about me and my assumption you about is right.I am a VP of an social welfare organization. and a CS student also. from your activity it seems that you are person who is extremely sick psychologically.

Dear Rupak,

Nice of you for exposing yourself as a knowledge seeker, but being extremely remorseless of his own misbehaviour towards the experts from whom he intends to learn something.

However, you need not worry about me, as I feel I have much more psychologically sound mind and honesty than you, as neither I change my stand to present lame excuses on afterthought frequently, nor I try to cheat anybody, like you have tried just to justify yourself.

Were you a VP of an social welfare organization and a CS student also, you could well have represented appropriately at the very first instance, when you introduced yourself as a student of a CS. You simply stated, "I m a CS student, it is a practical question." Had you really been of psychologically sound mind, you could well have reviewed your own replies before posting another contradictory and misleading reply. In fact, you did not even know what is a section 25 company, before Shri Prabhakar Singh pointed out to you that section 25 company is a "company for charity". So, clearly, your present statement is derived out of your previous statement as a student and the answer of Shri Prabhakar Singh on "company for charity," to justify yourself as aVP also of the company. You could not get any hint to save your position, even after one hour of posting of the answer of Shri Prabhakar Singh, when instead of clarifying your position appropriately, you preferred just to cast aspersions over me. But since, I posed another question to you, you could not find any other way except to express an after thought and another installment of insult on me. DO YOU KNOW THAT I CAN DRAG YOU IN A COURT OF LAW MERELY ON YOUR STATEMENT, "you are person who is extremely sick psychologically"? IF YOU CALL FOR THE VIEWS OF LEGAL EXPERTS ON YOUR STATEMENT, YOU CAN VERY WELL KNOW WHO CAN BE TERMED AS PSYCHOLOGICALLY SICK PERSON.

But still having no answer to my questions, you preferred not to reply my questions, but to resort to another bout of mud-slinging.

So when you have already termed me as extremely psychologically sick person, why not should I file a suit for damages against you for my open defamation? Would I be wrong in doing that?


However, I won't mind if you prefer more mud-slinging on me just to expose more of yourself.

V R SHROFF (Expert)
07 October 2012



prabhakar singh (Expert)
07 October 2012

Mr.Rupak ghose !

If I tried to attend your query that does not mean I gave you LICENSE to insult experts who are twice your age ,may be senior even more than your parents.


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