Directors remuneration

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

26 January 2017 Dear Experts
Pls clarify weather schedule v is partly applicable to pvt. Ltd. Company. My query is :- how much maximum remuneration a pvt. Company can pay to its directors in case of inadequate profit

Regds
Mukesh

c.bakshi

c.bakshi (Expert)
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27 January 2017 yes, only schedule V is applicable on pvt company. recently, the limit has been enhanced. consider the amendment. section 197 is only applicable in the case of public company. Only Schedule and AOA of the company taken into consideration

Querist : Anonymous

Querist : Anonymous (Querist)

27 January 2017 sir,
schedule v is partly applicable to pvt. companies which deals for No profit & inadequate profit however section 196(4) is not applicable to pvt. companies. so please clarify is there any limit for inadequate profit is governed suppose a pvt. company has profit of 1 crore before director remuneration weather this 1 crore profit before directors remuneration is inadequate profit or not

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c.bakshi

c.bakshi (Expert)
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28 January 2017 See the schedule carefully, its about (A) which talks about effective capital and not profits. in the event of inadequate profits, you may give remuneration without approval of CG within the limits. limit is like 0-5 crore paid up capital: 60 lacs.
however, this limit doubles, if approval from shareholders taken

Querist : Anonymous

Querist : Anonymous (Querist)

29 January 2017 Dear sir,
Yes schedule V which talk about inadequate profit wherein upto 5 Crore
paid up capital remuneration can be paid
60 Lakh, but my query is :- suppose if the
company has profit of 50 Lakh so in this
Scenario can we pay Rs. 60 Lakh remuneration to directors? If we do so
Then company will incurred the loss
of 10 Lakh,

Please clarify....

Thanks in Advance