Director remuneration



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 ?



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.




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