Increase in remuneration of executive director

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

07 September 2012 Whether increase in remuneration of Executive director of Private Limited Company from Rs. 1L to 2L requires approval of General meeting also or Board approval be enough.

Thanks in anticipation.

Ajay Mishra

Ajay Mishra (Expert)
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07 September 2012 Hi

No need of Government approval, because remuneration provisions of Companies Act, 1956 will not apply to private limited company. You are free to pay any amount to your directors. Board approval is sufficient.

Please check, what your company's says.

Guest

Guest (Expert)

08 September 2012 Board resolution will suffice. No need for shareholders approval.

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Guest

Guest (Expert)

08 September 2012 But if your director is MD then you will also have to file form 23 in addition to board resolution.