NIDHI KAPOOR (sxacacac) (82 Points)
15 April 2014Dear All,
a) A public limited company wants to pay remuneration to its executive director. Please note that the company is planing to pay remuneration to its managing director as per schedule V of the Companies act 2013 i.e. under inadequate profits then how shall the executive director is to be paid as there is no sufficient profit in the Company?
b) is section 196, 197, 198 of the Co. act 2013 applicable to private Co. ?
thanks and rgds,
Nidhi Kapoor
Company Secretary
P C Agrawal
(Registered independent director Past Chairman of Aurangabad Chapter of ICSI Practicing Company Secretary at Aurangabad)
(8229 Points)
Replied 16 April 2014
1) Provisions for payment of remuneration to WTD are same as of MD. You can pay to WTD also as per Sec.196 & 197.
2) Sec.196 is applicable to pvt. co. Sec.197(1) clearly provides that it is applicable to public company.
NIDHI KAPOOR
(sxacacac)
(82 Points)
Replied 16 April 2014
Thanks for the reply Sir.
So this means that in case of Private Companies we can give any amount as salary to the Executive Directors who is not a MD or WTD ?
CAclubindia
