Company can increase its directors salary by following section 310 of Companies Act, 1956 but if a company wants to reduce the salary of its Directors then what procedure it need to follow and what will be its implication on Company??
27 September 2013
The provisions of Companies Act, 1956 and Schedule XIII deal with remuneration of director will not applicable to private limited company. Such provision is applicable only public company and its subsidiary.
The remuneration of directors of the private company is totally governed by their company articles. If the Company’s article permits to pay remuneration with reduced amount, you can give remuneration without any restriction. For this you will pass a Board Resolution for payment of remuneration.
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