Rumenration to director

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

23 September 2011 Can remuneration be paid to a director who is not a MD and whole time director,and if yes what are the compliances to be followed?

CS Pawan Kumar Baid

CS Pawan Kumar Baid (Expert)
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28 October 2011 Company can pay director monthly/quarterly/yearly payment subject to limit of 1% / 3% or net profit.

1% is applicable if there is MD/WTD in company, else 3% (to all directors)

Additionally sitting fees can be paid for attending BoD meeting.

Refer Sec 198, 209, 210, 349, 350 and Schedule XIII of Companies Act.