Gurantee Commission to Directors
CS Pooja (Company Secretary) (305 Points)
21 July 2011
How Gurantee Commission can be paid to Whole Time Directors?
Regards,
Pooja
pawan tewari
( )
(544 Points)
Replied 21 July 2011
Payment of guarantee commission to a director of the company is a remuneration received by him for doing some service to the company, viz., undertaking liability in respect of the guarantee of the loan taken by the company. Such a remuneration would, therefore, fall within the purview of section 309.
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