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Increase in Director's Remuneration

CA Suraj Prasad Shaw (Chartered Accountant) (504 Points)

15 December 2010

Procedure for increasing the remuneration of directors of private limited company

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7 Replies

Rajeev kumar Nayak (ACS) (283 Points)
Replied 15 December 2010

Hi,

As provision relating to remuneration under companies Act, 1956 does not apply to private company.

so simply pass a Board resolution to increase the remuneration.

in case of increase in remuneration of MD, also file e-form 23 with ROC within 30 days of passing of Board resolution as per the provision of section 192 of the Act.

Rajeev Nayak

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Jayashree S Iyer (Company Secretary) (3224 Points)
Replied 15 December 2010

Provisions relating to remuneration and increase in remuneration payable to Directors of the company viz., Sections 309, 310, 311, 198, Schedule XIII, etc.) are not applicable to private companies. Hence hold a board meeting and get the increase approved by the board.

1 Like

Syam kamal (Company Secretary) (156 Points)
Replied 15 December 2010

Yes. Agreed with experts

udit sharma (Company Secretary) (2303 Points)
Replied 15 December 2010

Hi...

Undoubtedly agreed with the experts!

Sonia M Ketkar (B.com CA DISA(ICA) Pursuing CS) (625 Points)
Replied 15 December 2010

Agreed with experts!

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CS Ankur Srivastava (Company Secretary & Compliance Officer) (17853 Points)
Replied 17 December 2010

Originally posted by : Rajeev kumar Nayak
	Hi, As provision relating to remuneration under companies Act, 1956 does not apply to private company. so simply pass a Board resolution to increase the remuneration. in case of increase in remuneration of MD, also file e-form 23 with ROC within 30 days of passing of Board resolution as per the provision of section 192 of the Act. Rajeev Nayak