How to calculate the remuneration of ONE MD & 2 DIRECTORS OF A PUBLIC LIMITED COMPANY. The first year the company has inadequate profit. The second year the company has profit.
11 June 2015
The managerial remuneration payable by a public company to its directors(MD,WTD,MANAGER) in respect of any financial year shall not exceed 11%of net profit of company for that financial year comuted in the manner laid down in section 198 expect that remuration of director shall not be deductedfrom the gross profit. PROVIDED that ,expect with the approval of company in general meeting- 1-the remuneration payable to any one MD or WTD or MANAGER shall not exceed 5% of the net profits of company and there is more than one such director remuneration shall not exceed 10% of of the net profits to all such directors and manager together. 2-the remuneration payable to directors who are neither MD nor WTD shall not excceds- A-1% of the net progits of the company,if there is a managing orWTD or manager. B-3% of the net profits in any case 3-notwithstanding anything contained in subsections(1) and (2), but subject to the provisions of schedule 5,if ,in any financial year,a company shall not pay to its directors, including any managing or WTD or manager by way of remuneration any sum exclusive of any fees payable to directors sub sections (5) hereunder except in accordance with the provisions of schedule (5) and if it is not able to comply wiyh the previous approval of the central govt.
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