Please Help: Managerial Remuneraion
Posted Date : 15-Jun-2011 , 12:52:22 pm | Posted By Ashish Jain
My client is a director of a Pure Private limited company. The company is having a profit of 2 crores before tax, can he withdraw Rs.50lacs as a director remuneration. If yes what is a maximum limit of remuneration for a pure private limited company
Category : Corporate Law | Answers : 4 | Comments : 1 | Hits : 483
Answers
Answer By: CA VIKAS JAIN
you can allow to withdraw 50 lakhs if articles of association have provision about it.
Answer By: Vikash Kumar Jha
Well said sir
Answer By: Vaneet Gupta
Yes
Answer By: Vaneet Gupta
Yes
Comments
CA VIKAS JAIN
21-Jun-2011 , 06:13:14 amA private limited company is free and can make their own provision regarding the managerial remuneration. In other words sec 349 and 350 are not applicable on private limited company. So if article provides then managerial remuneration can be 25% of net profit of the company.