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Criteria of Director's Salary

Sachin (Chief Accountant) (24 Points)

04 March 2011

please let me know - what is the criteria of directory's salary in a pvt ltd company by company law .This company in which almost 100% shares owned by both directors and company engaged in construction activity

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5 Replies

Jag Bhushan Sharma (Faculty in a B-School) (633 Points)
Replied 05 March 2011

Dear Sachin, in case of private companies, there is no restriction on the remuneration to be paid to directors.

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AVIJIT (CA FINALIST) (370 Points)
Replied 05 March 2011

There is no restriction or specific criteria for Directors' remuneration of Pvt Ltd company. The restrictions or criteria is applicable for Public Ltd Companies.

naga rayudu (seniro commercial officer) (22 Points)
Replied 07 March 2011

Dear Sir,

Please let me know the criteria of director's salary in a public limited company

AVIJIT (CA FINALIST) (370 Points)
Replied 07 March 2011

@ naga: For public ltd company I do not remember the exact limits of Part time and Whole time Directors but the total mangerial remuneration should not exceed 5%.