DIRECTOR REMUNARATION IN PUBLIC COMPANY

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EKTA A PATEL (Querist)
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09 March 2011
IN A PUBLIC UNLISTED COMPANY CURRENTLY DIRECTORS ARE PAID UPTO MAXIMUM LIMIT OF RS.1,50,000/-. 1) IN MARCH FOR YEAR 2010-2011 I WANT TO INCREASE MY LIMIT WHAT COULD BE MAXIMUM ACCORDING TO AMENDED SCHEDULE XIII? 2) DO I NEED TO CALL REMUNERATION COMMITTEE MEETING? 3) DO I NEED TO FILE ANY FORMS WITH MCA FOR THE SAME

PLEASE EXPLAIN ME IN DETAIL

Jayashree S Iyer

Jayashree S Iyer (Expert)
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09 March 2011 If yours is a profit making company you can pay remuneration upto the limits (5% or 10%, as the case may be) specified in Section I, Part II of Schedule XIII. No need for Remuneration Committee.

If the company has no profits or inadequate profits then resolution is to be passed by the Remuneration Committee. The maximum limit of remuneration would depend on the net effective capital of the Company. Please refer to Part II of Schedule XIII for the limits.

For appointment of WTD, Form 25C is required to be filed within 90 days of appointment.