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Remuneration

Pankaj Arora (Learner) (3134 Points)

06 May 2017

Mr A (executive director)drawing salary from ABC limited and PQR Pvt Ltd .. if we have to calculate maximum remuneration ceiling under companies act than we have to club salary drawn from ABC Limited and PQR Pvt Ltd together..??

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Sudhir Todkar (CS Professional) (1021 Points)
Replied 06 May 2017

The restrictions with regards to managerial remuneration contemplated under section 197 do not apply to INDEPENDENT Private company and Government company.

Directors of private company can be paid remuneration as per the provisions of articles..

If that private company is a subsidiary company of that company then it's should be disclosed in the Board report. But in this case both are not associated so irrespective of his/her position in private company no need to include remuneration while computing his remuneration..