sharing of profit

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

15 November 2010 We are 5 directors in a private limited company.
A B C D and E
A B and C have the sharing of 34 %
D and E has 33%-33% each.
With the efforts of D and E company got the profit in a buisness.
A B and C are the non operative directors.
What is the possibility that sharing of the profit be in 45%-45% that of D and E
Rest of the profit remains in the company as 34%-33%-33%.
How two Directors can withdraw the profit from the company as other Directors are ready to cooperate them.

My query is not the share of profit distribution rather I want to know that if 2 out of 5 directors want their money safe and how theycan take the money in their individual account
1. as remuration 2.share
What amount fromthe total capital can bewithdrawn in name of 2 Directors as per company law

CA Shiv

CA Shiv (Expert)
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15 November 2010 First thing is it is a company as mentioned by you. Than how directors are going to get profit from it. They can withdraw salary.
Also it wil be done as per AOA. so amend AOA if want to change terms and conditions

CA.Madhusudan B.P.

CA.Madhusudan B.P. (Expert)
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15 November 2010 What ever the Profit sharing is stated holds good in case of partnership firms.

When it comes to Company, profits cannot be based on profit sharing, rather based on the capital contribution in the Share capital Equity shares. THAT TOO only when the company pays dividends & not otherwise.

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Querist : Anonymous

Querist : Anonymous (Querist)

16 November 2010 We are 5 directors in a private limited company.
A B C D and E
A B and C have the sharing of 34 %
D and E has 33%-33% each.
With the efforts of D and E company got the profit in a buisness.
A B and C are the non operative directors.
What is the possibility that sharing of the profit be in 45%-45% that of D and E
Rest of the profit remains in the company as 34%-33%-33%.
How two Directors can withdraw the profit from the company as other Directors are ready to cooperate them.

My query is not the share of profit distribution rather I want to know that if 2 out of 5 directors want their money safe and how theycan take the money in their individual account
1. as remuration 2.share
What amount fromthe total capital can bewithdrawn in name of 2 Directors as per company law