How much remuneration is to be paid to all directors

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

07 February 2017 Dear Experts,
in public company there is 5 directors inclusive one sitting doirector.
Pls clarify How much maximum remuneration can be paid to all the 5 directors. What's its criteria?

Regards
Mohit Jain

Jatin Bajaj

Jatin Bajaj (Expert)
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10 February 2017 According to section 197 of the companies act 2013 , the total managerial remuneration payable by the public Company to its Directors including Managing Director , whole Time Director and manager shall not exceed 11 % of the net profit of the Company . but these remuneration payable shall be exclusive of any sitting fees paid to Director.
The remuneration payable to any one managing or whole Time Director shall not exceed 5% of the net profit of the company and 10% of the net profit of the Company if there is more than 1 such Director.
however the remuneration payable to directors who are neither managing nor wholetime director shall not exceed 1% of the net profit if there is already managing or whole time director in the company and shall not exceed 3% of net profit of the Company if there is no managing or whole time Director

Querist : Anonymous

Querist : Anonymous (Querist)

11 February 2017 Dear Jatin sir,
Thanks for your valuable inputs.

Sir i am confused on this line :- the remuneration payable to any one MD or WTD shall not exceed 5% net profit of company and 10% of Net profit if there is more then 1 such director?

You are requested to clarify the above line with an example if possible?

Thanks In Advance........

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Jatin Bajaj

Jatin Bajaj (Expert)
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11 February 2017 it means that remuneration paid to single person , For Example Mr. A, Managing Director of the Company . The remuneration paid to him shall not exceed 5% of the net profit of the Company. Suppose There are whole time Directors in the Company. Say , Mr. x, y, and Z. SO remuneration paid to all the 3 directors in agregate shall not exceed 10% of the net profit of the Company

Querist : Anonymous

Querist : Anonymous (Querist)

13 February 2017 Sir,
Scheduled V deals with No profit and Inadequate. In if the company net profit is say 5 Lacs even in this scenario can we pay Rs. 60 Lacs remuneration to directors as specified in scheduled v

Please clarify.....