Remuneration to director

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

21 August 2013 In case of private limited company, how to calculate remuneration to director.whether any section is applicable to remuneration to director as per companies act, 1956.

Ganeshbabu K

Ganeshbabu K (Expert)
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21 August 2013 there is no cap on director remuneration for private limited companies under companies act 1956..

in pvt company remuneration can be decided by articles of company

Ajay Mishra

Ajay Mishra (Expert)
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21 August 2013
Hi

The provisions of Companies Act, 1956 and Schedule XIII deal with remuneration of director will not applicable to private limited company. Such provision is applicable only public company and its subsidiary.

The remuneration of directors of the private company is totally governed by their company articles. If the Company’s article permits to pay remuneration you can give remuneration without any restriction. For this you will pass a Board Resolution for payment of remuneration.

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CA UMESH DULAL

CA UMESH DULAL (Expert)
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21 August 2013 deduct TDS @10% on remuneration paid to directors

CA BHARATH KUMAR

CA BHARATH KUMAR (Expert)
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22 August 2013 As per Board of Resolutions by Director

Ankur Garg

Ankur Garg (Expert)
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22 August 2013 Agree with experts.
Strict provisions related to remuneration are not applicable to a private company. A private company can give any remuneration to its directors subject to provisions of articles.

Thanks