remuneration to non active director in a company

Gaurav (Student) (30 Points)

10 May 2010

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

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Suryakiran (Article) (30 Points)
Replied 10 May 2010

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

Also make sure he is an executive director

Ankur Garg (Company Secretary and Compliance Officer) (114773 Points)
Replied 10 May 2010

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).

Avika, ACS (HR Legal and Management Consultant) (172 Points)
Replied 17 May 2010

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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