Please let me know whether is it allowed to pay MONTHLY REMUNERATION (other than sitting fees) to Non-Executive Director of PRIVATE LIMITED COMPANY as per CA 2013. ??
because if am not wrong then as per CA 2013, Public Company as per Sec. 197(1) (ii) can pay REMUNERATION to Directors who are neither managing nor whole-time Director as per specified %.
BUT as the above stated provisions of remuneration not applicable to Private Limited Company, whether Private Limited Company allowed to pay monthly remuneration without any limit to Non-Executive Director.
10 November 2016
AS SECTIONS OF 197 IS NOT APPLICABLE ON PRIVATE LIMITED COMPANY SO cOMPANY CAN PAY THE REMUNERATION TO NON EXECUTIVE Director without any Limit. In case of Public Company , remuneration paid to non executive Director who are neither the Whole Time Director nor Manging Director shall not exceed 1% of the net profit of the Company. But in case of Private Company, these limit shall not be applicable. However sitting fees payable to such Directors shall not exceed 1 lakh
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