Remuneration to directors
This query is : Open
12 August 2019
WHAT ARE THE THINGS WE NEED TO DO IF A PRIVATE COMPANY IS GIVING REMUNERATION TO ONE OF ITS DIRECTOR CUM CHAIRMAN RS. 5 LAKHS P.M. AND OTHER DIRECTORS 2.5 LAKHS AND 1 LAKHS P.M. RESPECTIVELY AND ALL OF THE DIRECTORS ARE RELATIVES.
12 August 2019
Such remuneration payments to directors allowed in private limited companies. You can't do anything.
12 August 2019
Thanks sir, so in this case whether Section 188 of the CA, 2013 will not be applicable to private companies as all of the Directors are relatives.
12 August 2019
Applicable but approval of the board is required. No problem in obtaining approval.
12 August 2019
THANKS SIR, BUT ONE OF THE VERY SENIOR MEMBER IS INSISTING ME THAT ITS REQUIRED TO PASS SPECIAL RESOLUTION FOR THE SAME AS ITS COME UNDER DEFINITION OF "PLACE OR PROFIT" U/S 188(1)(F) AND THERE IS NO EXEMPTION FOR PRIVATE COMPANIES REGARDING THIS.
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