Salary to director in private company

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

01 December 2014 Can salary to director in private company be given if he is non executive director under the Companies Act 2013. If no, what are the formalities under CA 2013.

CS Mitesh Mehta

CS Mitesh Mehta (Expert)
Follow

02 December 2014 YOU CAN PAY SALARY TO NON EXECUTIVE DIRECTOR

Querist : Anonymous

Querist : Anonymous (Querist)

03 December 2014 But Sir regarding appointment of WTD in a Private Company under the Companies Act, 2013 wont be like this?

As soon as we start giving salary to a director, that director becomes a whole time employee of the company. Once a director is a whole time employee than by virtue of Section 2 (94) of Co's Act, 2013 he becomes a Whole Time Director.

Section 196 read with Schedule V of Co's Act, 2013 is applicable on both Private and Public Company.

So if the proposed appointee is a person who complies with Section 196 and SchduleV than no approval of CG is required and only MR-1 along with MGT-14, DIR-12 would be filed with ROC.

please confirm

Upgrade to CAclubindia Pro. Subscribe Now!

CS Mitesh Mehta

CS Mitesh Mehta (Expert)
Follow

04 December 2014 non executive director can be paid salary by way of sitting fees and/or commission

Querist : Anonymous

Querist : Anonymous (Querist)

04 December 2014 Sir,
But if we are showing as salary, then?