can anybody tell me the procedure to calculate remuneration of whole time director?
how it is to be check u/s 198, 309
5 Replies
(Guest)
| Originally posted by :suchita kothari | ||
| " | can anybody tell me the procedure to calculate remuneration of whole time director? how it is to be check u/s 198, 309 |
" |
the remuneration paid to Directors is subject to provisions of se 198,309 and schedule xiii of the campanies Act
The term remuneration has not been defined in the Act
Sec 198(1) lays down 11% of the net profit as the overall ceiling on the total managerial remunaeration payable by a public.....
Sec 198 and 309 does bot apply to private company.But it will apply to private company which is subsidiary of public company
entire povisions and schedule xiii is not possible to write here .....................
It will be better to go through Company law Books.............
hemishp
(Company Secretary)
(32 Points)
Replied 08 February 2009
As per Section 309 :
- if there is only one managing director or one whole time director then maximum remuneration payable is 5% of Net Profit.
- If there is more than one managing director including whole time director then maximum remuneration payable to them overall is 10% of Net Profit.
Procedure for Calculation of Net Profit for the purpose of remuneration of Managing Director:
Profit as per P& L a/c xxxxxxx
Add: Items not deductible u/s Section 349 and 350
Less: deduction allowed u/s
Sadhana
(CS)
(181 Points)
Replied 08 December 2009
is it necessary to file form 23 for appointment of Executive chairman, executive director and director and fixing their remuenration by ordinary resolution in AGM.
Saravanan
(Student)
(25 Points)
Replied 28 May 2010
is this for a public company or private company or for both
Nitin Grover
(CS)
(1228 Points)
Replied 28 May 2010
Hi
Its only for Public Companies and Private (subsidiary of Public Company)not applicable on purely private company.
in Pvt company u can pay remuneration upto any limit passed in BR only and file form 23 thats it.
Regards
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