Exclusive HOLI Discounts!
Get Courses and Combos at Upto 50% OFF!
Upgrad
LCI Learning

Share on Facebook

Share on Twitter

Share on LinkedIn

Share on Email

Share More

Hetal (manager)     30 March 2013

Director remuneration

SIR

 

What is maximum limit of MD / director remuneration in case of  unlisted limited  company in case of profit ?

 

what is maximum limit of MD/ director remuneration in case of unlisted limited company in case of loss ?



Learning

 1 Replies

Rajeev Kumar (Sr. Gen. Mgr.)     28 May 2013

Hetal,

Refer Section 198 of the Companies Act and you will get your answer to first query.  As your company is an unlisted public company, your company can pay a maximum of 5% of profits arrived at in terms of Sections 349 to 351 of the Companies Act, 1956.  Please note that if the company is having more than one managing and whole time directors, the remuneration to all of them in aggregate, cannot exceed 10% of net profits of the Company.

Further, in case absence or inadequacy of profits, the company can pay to MD remuneration as specified in Schedule XIII as the minimum remuneration (irrespective of the fact that such remuneration is more than 5% of net profits).

Hope this will satisfy both of your queries.


Leave a reply

Your are not logged in . Please login to post replies

Click here to Login / Register