hi friends,
can company give salary/remuneration to a director of the company more than that of their paid up capital ?
4 Replies
CS Arjun Rajagopal
(B.com, ACS)
(1056 Points)
Replied 13 January 2014
Dear Arpit,
Since 198,309 of the Companies Act, 1956 is not appliable for a Private Company. A private company can pay any amount of remuneration to its directors.
Arpit Pachisia
(CA)
(734 Points)
Replied 13 January 2014
but can they pay any amount of salary to a director ?
Ankur Garg
(Company Secretary and Compliance Officer)
(114773 Points)
Replied 13 January 2014
Salary to Directors in case of private company is governed by the provisions of Articles of Association of the company. If there is no restriction in Articles of Association then you can give any amount of salary.
Thanks
Anil Dhiman
(Company Secretary)
(114 Points)
Replied 14 January 2014
I agree with Ankur Sir.
But I feel there such be a genuine justification for payig salary more than that of its paid up capital.
Recent Topics
- NRO Interest - Taxed at source and in Foreign Coun
- Clarity needed on effective date
- Income Tax Refund Deadline Shortened to Five Years
- Rectification Applications for Past GST Demands
- Where can I find a trusted provider to hire a skip
- GST Invoices Series
- FILING OF ITR AY 20-21
- CLAIMING OF U CLAIMED RCM
- Building construction works
- REGARDING GSTR-9 F.Y 2023-24
Related Threads
CAclubindia
