Directors remuneration in pvt. company

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

21 January 2016 Dear Experts, section 197 is not applicable to pvt. ltd. company, does t it means can pvt. company provide the remuneration it's directors as much as they want... Regard Anshul Jeswani

Arun Biyani

Arun Biyani (Expert)
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21 January 2016 Yes provision relating to managerial remuneration are not applicable to a private limited company.

Subject to the provisions of your AOA you are free to give remuneration to your director by passing a board resolution.

Querist : Anonymous

Querist : Anonymous (Querist)

21 January 2016 sir can you please explain the role of AOA in respect of managerial remuneration

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Arun Biyani

Arun Biyani (Expert)
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21 January 2016 Generally There is a clause related to Director Remuneration in AOA of all the companies. You need to check your AOA and see if they have put some restriction or limit for remuneration. If there is no limit, then you are free to pay whatever amount you want.