umesh_mishra16 (32 Points)
29 August 2007Hi,
Can somebody please confirm me whether Managerial Remuneration clause under Companies Act is applicable to Private Limited Company.
If yes, then what are the procedures to be followed for paying Remuneration of Rs. 2 lac per month to a director ?
Rakhee
(Company Secretary)
(62 Points)
Replied 29 August 2007
Ramasubbu K
(Sr.GM - Finance & Company Secreta)
(685 Points)
Replied 30 August 2007
R.V.RAO
(SERVICE)
(4125 Points)
Replied 01 September 2007
Pranav
(Doing something or the other)
(92 Points)
Replied 11 March 2009
I agree with what Jignesh has said. However, you could ask the management/accountant for a written documentation of what a manager is supposed to recieve in monetary terms for his services. Everything should be properly specified with respect to rates. It's almost like auditing the salary with the appointment letters. Don't worry dude. ;)
PAWAN KEJRIWAL
(MANAGER ACCOUNTS)
(20 Points)
Replied 29 July 2009
In case of private limited company, whcuh is during the year come under section 4 (7), so company has to comply with some specific section including manegerial remunerration section also. So please can you clarify whether while calculating the limit of 10% or 11% whether we have to take one year profit of profit for the period comes under 4 (7), further remuneration will be taken for 1 year or proportionately that is during the period the company come under section 4(7).
Deepika singh
(CS & MBA)
(46 Points)
Replied 30 July 2009
Hi Pawan,
Your querry is not so much clear. Do you want to say that your company which is private in nature has come under the purview of Sec 4(7) of the act and so the managerial remuneration has to be calculated, for the current year, in accordance with the provision of the Act?
Pl clarify.
Deepika Singh
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