21 October 2013
Sch. XIII is not applicable to Pvt. companies, hence there is no limit on extent of directors ' remuneration. its also not mandatory to pay any remuneration to directors and it can well be NIL ( even for MD /WDs also )
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 you can give remuneration without any restriction. For this you will pass a Board Resolution for payment of remuneration and made changes as and when you want to change in next year .
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