Rajesh Poddar (Chartered Accountant) (321 Points)
18 February 2012Dear All,
In case of Private Limited Company there is net profit of Rs. 10 Lakhs. There are 3 working directors.
Can each of these directors take Rs. 3 Lakhs p.a. as their Directors remuneration. i.e Total Directors Remuneration Rs. 9 Lakhs p.a.
My query is that is there any cieling on Directors Remuneration in case of Pvt. Ltd. Company.
Please Reply
Rajesh Poddar
CS Rajveer Rai, Gurgaon
(CS)
(646 Points)
Replied 18 February 2012
section 198 and 309 deals with matter of remuneration but not applicable to pvt co.
Suguna
(VP)
(98 Points)
Replied 18 February 2012
sec 198, sec 309 and schedule XIII dealing with managerial remuneration are not applicable to a pvt company. there fore there is no ceiling on the remuneration payable to the directors of a pvt company.
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