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