Directors remuneration

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

20 November 2014 Whole time Directors of a private ltd. company intend increase their remuneration to Rs. 600000.00 per annum from Rs. 300000 lakhs per annum. The profit of the company is varies from 5to 6 lakhs after charging directors remuneration of Rs. 900000.00 for three directors.Whether there is any restriction or limitation to this as per the provisions of Companies Act 2013 ?

Whether the resolution to this effect has to be filed with ROC in MGT14

CS Mitesh Mehta

CS Mitesh Mehta (Expert)
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21 November 2014 Section 197 of the Companies Act, 2013 prescribed the maximum ceiling for payment of managerial remuneration. It is applicable to public company.