In a unlisted Limited Company, There are 2 WTD and 1 MD. All of the three are being paid a combined sum of rs. 12, 60, 000 for a year i.e. 1,05,000 p.m. i.e. 50, 000 to MD, 30000 TO WTD and 25000 to teh 2nd WTD. Now as on 31.03.2013, the term of MD and one WTD expires and we ahve to re-appoint them for further 5 year. but when i checked the profits of the company a on 31.03.2013, it was Rs. 60, 00, 000 only i.e. company can pay only rs. 600000 salary to all teh directors i.e. 10% of net profits. Now my question is:
1. whether the company has to form Remuneration Committe?
2. if yes, from which date the committee has to be form. as we calculate profits as on 31.03.2013 but i think profits have come down in between the year. so what to do?
3. what will be the working of remuneration committee during the year. as how many times, the commiitee has to hold the meeting.
Please elaborate.
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