Remuneration payable to ned
Guest
(Querist) 17 November 2016
This query is : Resolved
XYZ Ltd. desires to pay salary to its part-time directors.Is it permissible as per provisions of the Companies Act,2013?
Section 197 (6) of the Companies Act, 2013 which states that a
director or manager may be paid remuneration either by way of a monthly payment or at a specified percentage of the net profits of the company or partly by one way and partly by the other.
Remuneration includes any money or its equivalent given to any person for services rendered by him and includes perquisites as defined under the I.T. Act,1961.
If they are paid salaries,will they not become employees of the Company?
adv.bharat @ PUNE
(Expert) 19 November 2016
No they were designated as part time director of that company.
Will u appreciate my answer by giving like on my LCI profile?
