The provisions of remuneration of the Companies Act, 1956 is not apply to private company. Private company is free to pay remuneration to its directors.
15 March 2012
Check whether the person who is appointed as CEO is relative of any director. In case he is relative of director then provision of section 314 shall be applicable. Central govt approval will be required if more than 2.5 Lacs per month is paid to CEO u/s 314.