Director remuneration

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

05 July 2013 a pvt.ltd. co.was started in 2009
from 2009 to till date no managing director/director is getting remuneration/salary in AOA clearly mentioned that managing director will get remuneration

can we provide remuneration from now onward ?
any resolution will pass ?

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
Follow

05 July 2013 In case sufficient profits are there in the company and directors are willing to take such remuneration , they may pass a resolution in the Board Meeting.
.

Message likes : 1 times

Rajat Poddar

Rajat Poddar (Expert)
Follow

05 July 2013 yes..u can provide remuneration..and according to me resolution would be required..

Message likes : 1 times

Upgrade to CAclubindia Pro. Subscribe Now!

Ajay Mishra

Ajay Mishra (Expert)
Follow

05 July 2013

The provisions of Companies Act, 1956 and Schedule XIII deal with remuneration of director will not applicable to private limited company. Such provision is applicable only public company and its subsidiary.

The remuneration of directors of the private company is totally governed by their company articles. If the Company’s article permits to pay remuneration you can give remuneration without any restriction. For this you will pass a Board Resolution for payment of remuneration.