Directors Remuneration in a Private Ltd. Company

[CS Mansi Bhati]

Dear All

Please clarify and state the full procedures and sections/limits for giving remuneration to TWO directors of Rs. 2 lacs p.m. 

Paid up cap of the co. - 8,60,00,000/-

Kindly reply.

Regards 

CS Mansi Bhati  

[suneel sahu]

A director who is in whole time employment of the company or a managing director may be paid remuneration either by way of a monthly payment or at a specified percentage of net profits of the company or partly by one and partly by the other. Such remuneration cannot exceed 5 % of the net profits of the company, except with the approval of the Central Government in case of one director and 10 % for all such directors.

The total managerial remuneration payable by a public company or a private company which is a subsidiary of a public company to its directors and its manager in any financial year must not exceed 11 % of the net profits of the company calculated in accordance with the provisions of section 349, 350 and 351.

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[CS Mansi Bhati]

Dear Suneel Ji

Thanks for the reply but Please specify the procedure for PRIVATE LIMITED COMPANY.

[suneel sahu]

there is no any procedure for increasing the managerial remuneration. Please follow the Article of Association of the Company if there is any clause or amend it, if required..............

[krishna ds]

Dear,

Section 309 - Remuneration of Directors, 310 - Provision for increase in remuneration to require Government sanction & 311 - Increase in remuneration of managing director on re-appointment or appointment act to require Government sanction - IS NOT APPLICABLE TO PRIVATE LIMITED COMPANIES.

Thanks & Regards...?

D S Krishna

Mobile: 94480 18302

[Mansi Bhati]

wat about section 314... it is specified in AOA

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Thanks & Regards

Mansi Bhati

Company Secretary

Mob: 09654108101

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[Venkat Ragavan]

Dear Suneel.

 

349/350

Determination of net profit for remuneration of director.

will not applicable to private company.

 

Regards

 

CS.Venkata Ragavan