P.K. SHAW (CS & Compliance Officer and CA Final) (59 Points)
07 December 2009Dear All,
A Company under BIFR apponited a new Director who is relative of promoters and paying him remuneration of Rs. 2 lacs P.M. The Company has not started commercial production and have no profit. the company has accumulated loss of Rs. 50 crores.
Can the Company pay remuneration of Rs. 2 lacs p.m., if yes how?
what are the other sections need to be complied.
Chitrank Jain
(Senior Manager - Group Internal Audit)
(146 Points)
Replied 07 December 2009
In this case since company is not making profit you will have resort to Schedule XIII of the companies act, which stipulates the remuneration that can be paid ( depending on the the paid up capital of the company)
P.K. SHAW
(CS & Compliance Officer and CA Final)
(59 Points)
Replied 07 December 2009
Then What abt Compliance of sec. 314 of Companies Act ?
CAclubindia
