Directors remuneration

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

27 November 2013 Is there any limit on payment of remuneration to directors of a private limited company as per the provisions of the Companies Act,1956 or Companies Act,2013?

Ajay Mishra

Ajay Mishra (Expert)
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27 November 2013 Hi

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.