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Salary to Non Executive Director of Pvt Ltd Co

Vibha (Service) (62 Points)

03 April 2019

Can a pvt ltd co pay salary/remuneration to its non executive director? What section of the Companies Act, 2013 allows this?

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CS Vasudev Sharma (Service) (405 Points)
Replied 03 April 2019

There is no ceiling for payment of remuneration to directors of a private limited Company. Provisions regarding payment of remuneration are applicable only to a public limited company. You can simply pass a resolution or mention in the appointment letter of the directors that this much amount will be given as remuneration to the director.