Change in directors remunaration

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NEHA GOPALIKA (Querist)
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26 June 2013 There are four Directors in a company to whom the company has been paying directors remuneration of say 2.5 lakhs each till last year.
Now from this year onwards i want to reduce/ not pay the directors remuneration to two directors.
what are the possible options/steps.

CA.Vinita Gupta

CA.Vinita Gupta (Expert)
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26 June 2013 Pass a Resolution stating the reasons for the same, wherein you can mention that the Directors have opted to forego their remuneration

Ajay Mishra

Ajay Mishra (Expert)
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26 June 2013 Whether it is public limited company or private limited company.

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NEHA GOPALIKA

NEHA GOPALIKA (Querist)
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28 June 2013 private limited company

Ajay Mishra

Ajay Mishra (Expert)
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28 June 2013 Yes, it is possible.

Pass a Board resolution and reduce the same.

The provisions of Companies Act, 1956 relating to director remunerations is not applicable to private limited company.

NEHA GOPALIKA

NEHA GOPALIKA (Querist)
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04 July 2013 Since i do not want to pay them any remuneration so should i change them from executive to non executive, since some remuneration will be required to be paid if i keep them executives. So do i need to file form 32 for changing them from executive to non executive.