Professional payment to director

This query is : Resolved

CA SONI KRUNAL (Querist)
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23 August 2012 Hi,

I M a manager in the Bank , I m going to Fund a doctor , as per Him , they have started one Pvt Ltd Co as a SPV , and booking entire receipts in the Pvt Ltd Co, and in return receiving Professional Income from The company . I want to know , is there any restriction in CompaniesAct to Fund Prof fees or any other fees to Directors of The Company?

Amol S Joglekar

Amol S Joglekar (Expert)
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23 August 2012 No such restriction. The similar case is normally observed in the cases of PATHOLOGISTS. Networking has started taking shapr in this category of professional as well. No harm in funding the pvt ltd co subject to always... repayment capacity and security.