Appointment of ceo-terms

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

15 March 2012 We have 6 group companies all are Pvt Ltd Cos.

We have appointed a person as CEO in one of the Group Company in which he is not a Director.

But the same person is a Director of other Group Company.

Is any permission required.

Can we pay remuneration to him and is there any limit.

Pls guide me

Ajay Mishra

Ajay Mishra (Expert)
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15 March 2012

Hi

The provisions of remuneration of the Companies Act, 1956 is not apply to private company. Private company is free to pay remuneration to its directors.

Regards

Message likes : 1 times

Guest

Guest (Expert)

15 March 2012 Check whether the person who is appointed as CEO is relative of any director. In case he is relative of director then provision of section 314 shall be applicable. Central govt approval will be required if more than 2.5 Lacs per month is paid to CEO u/s 314.

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