01 August 2013
dear expert sir/madam, Me and my friend started a consultancy firm as a pvt. ltd company.only two of us are the director of company for 50:50%. i want to ask when we earn money than after paying tax and all the expenses like ( payments of directors, payment of employees, rent, other expenses). can we both director the remaining money for self as we want if yes than how ? because we both want to buy home and our all money is coming to our company account.
First of all the profit of the company is use for the business of the company and its shareholders in the form of dividend. Dividend is distributed out of profit of the company to its shareholders and not to the directors.
The directors of the company will be entitled to the salary and other benefits if it is approved by the Board of Directors in its meeting subject to the provisions of company's articles.
03 August 2013
thank u for your reply sir, but in this company only we two are the owner/director/shareholder of the company. in this condition what we can do
CAclubindia
