Go Ad-Free on CAclubindia with Daily Mobile Updates. Subscribe Now!

Managerial remuneration under section 198

Pankaj Arora (Learner) (3134 Points)

07 January 2012

Dear All

Our co. net profit as per companies act section 349 is 86176 million…

How much managerial remuneration under section 198 of companies act would be?

Company have two whole time director…

Reply
Follow
Share

7 Replies

(Guest)

As per section 198 and 309 (3), If company has two whole time director then remuneration payable to them together will be maximum Rs. 8617.6 Million (in any proportion/ratio) subject to authorised as per resolution mentioning their terms of appointment and remuneration.

In case you want to pay remuneration higher than the above limit you have to pay it according to PART II of schedule XIII of the Companies Act, 1956.

Upgrade to CAclubindia Pro. Subscribe Now!

K.K.K. (Professional) (131 Points)
Replied 07 January 2012

not agree on the term "(in any proportion/ratio)", as each of them is entitled to max. 5%.

(Guest)

As per section 309 (3) Managerial personnel is entitied to max. 5% if there is one OR 10 % for all of them together. It means it can be in any proportion, not necessarily 5% each.

K.K.K. (Professional) (131 Points)
Replied 09 January 2012

Originally posted by : Neha Jain
	As per section 309 (3) Managerial personnel is entitied to max. 5% if there is one OR 10 % for all of them together. It means it can be in any proportion, not necessarily 5% each.