Directors remuneration

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CS KINJAL SANGANI (Querist)

19 April 2012 Hi, can any one let me know that if the directors salary has been increased in the year , then is there any necessity to pass a resolution for this in an AGM, or directly it can be paid to the directors through board meeting. please let me know the provisions of this, its urgent.

Ajay Mishra

Ajay Mishra (Expert)

19 April 2012 Hi

In case of public company, it will be subject to shareholders and remuneration committee approval.

In case of private company, the provision of remuneration will not apply.

Regards

CA Kishore Tallam

CA Kishore Tallam (Expert)

19 April 2012 Also. See that the increased remuneration is not exceeding 11% of net profits of the company.

CS KINJAL SANGANI

CS KINJAL SANGANI (Querist)

19 April 2012 its public company. The MD has been appointed for a period of fiver years and remuneration has been increased then what about the resolution has to be passed or the salary can directly be paid.

Ajay Mishra

Ajay Mishra (Expert)

19 April 2012 Hi

It is required to approved by shareholders meeting and then you can pay remuneration. You can pass shareholders approvals retrospectively for payment of remuneration.

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