Director remuneration

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Querist : Anonymous

Querist : Anonymous (Querist)

28 September 2012 Sir/madam

Is there any restriction on remuneration in private limited incase of loss.

Ajay Mishra

Ajay Mishra (Expert)
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29 September 2012 Hi

The provisions of Companies Act, 1956 relating to remunerations of directors will not apply to private limited company.

The remuneration of directors of private limited company is governed by its Articles of Association, so please check your company articles, if it is not restricting , then you can pay remuneration in case of loss.

CS Ankur Srivastava

CS Ankur Srivastava (Expert)
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01 October 2012 The provisions of remuneration are not applicable on Private Companies.

For the remuneration of Directors in private Company Article and the relative Board Resolution shall govern.

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