THOMAS (Article assistant) (29 Points)
01 May 2008Hi,
I just wanted to know if there is any ceiling on the total amount that can be paid as remuneration to Director of Private Ltd Company. Sec 309 of Companies act states that the maximum remuneration that can be paid is 5% of net profit. Just wantedsome clarity on this issue.
Monika Mulvanshi
(service)
(81 Points)
Replied 02 May 2008
As per sub section 9 of Sec 309, The provisions shall not apply to a private company unless it is a subsidiary of a public company
Mohit Gurjar
(COMPANY SECRETARY)
(25 Points)
Replied 02 May 2008
There is no bar / ceiling on payment of Remuneration to Directors of a Pvt Ltd Co. as Section 198, 309 are NA to PVT Co.
How ever u need to check wether the Articles of Association authorise the Board or Members to approve Remuneration.
CAclubindia
