Directors Remuneration

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CA Ankit Zaveri (Querist)
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05 September 2009 Please explain the procedure as per the Companies Act for payment of remuneration to a Director of a Private Limited Company who is also a Managing Director of some other Private Limited Company and is also a shareholder in both the Priave Ltd., Companies. Also the profit of the Company that wants to pay remuneration to its Director/Directors is less.

Ankur Garg

Ankur Garg (Expert)
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05 September 2009 Hi,

Strict provisions related to managerial remuneration are not applicable to a private company.

So by passing a board resolution you may give remuneration to your director.

Regards

Sreedhar Atchutuni ACA,GradCWA

Sreedhar Atchutuni ACA,GradCWA (Expert)
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05 September 2009 Yes, I agree with above expert.

Provisions of companies act relating to directors remmuneration does not apply to a private company.

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Ankur Garg

Ankur Garg (Expert)
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06 September 2009 Thanks sreedhar

Sreedhar Atchutuni ACA,GradCWA

Sreedhar Atchutuni ACA,GradCWA (Expert)
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07 September 2009 Thanks and welcome Mr.Ankur Garg ji