Remuneration to Private company Director

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GBhura (Querist)
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10 February 2011 Remuneration to Directors of private limited company governed by which section of Companies Act.Is there any monetary limitation.Is any approval of Central Govt. required.

Sunil Kr. Sanganeria

Sunil Kr. Sanganeria (Expert)
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10 February 2011 Private limited companies are not subject to any limits on managerial remuneration. No Central Government approval is required

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CA Sanat Pyne

CA Sanat Pyne (Expert)
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10 February 2011 Sch. XIII is not applicable to Pvt. companies, hence there is no limit on extent of directors' remuneration.

its also not mandatory to pay any remuneration to directors and it can well be NIL (even for MD/WDs also)

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Jayashree S Iyer

Jayashree S Iyer (Expert)
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11 February 2011 Private Companies are free to fix the remuneration of its Directors. The limits specified in 198, 309, 310 and Schedule XII are not applicable to private companies.