remuneration to non active director in a company

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can anyone please tell me the limits for remuneration to a non-active director of a company???

Replies (3)

I think Rs.24 lacs p.a. M not sure. Let others reply

Also make sure he is an executive director

If your company is a private company then there is no problem as strict provisions relating to remuneration are not applicable to a private company.

 

In case of a public company remuneration provisions are same for any kind of directors whether active or non-active. Refer section 309(3) and (4).

The limit is 1% of the net profits of the Company if the Company has a managing director or whole time director.

If the companu does not have a managing director or whole time director, the limit ould be 3%


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