Sibabrata.majumdar
Management Consultants Legal & Hr
Nsundar4
G.m. ( Admin)
+1 Other

Thread Started by #Akansha Mittal

Dear Sir,
I have posted my query in Human Resource Section > Employee Compensation & Benefits but received no reply.
So I'm posting the same here, hoping to receive a reply.
If a Pvt. Ltd. Co. is formed with 2 persons (directors) as required by law, then can one person be one the payroll of the company and the other person NOT on the payroll of the company. Is this allowed by law.
Thanks.
15th February 2014 From India, Mumbai
Hi,
Thanks for the reply.
If for an example in a Pvt. Ltd. Co. there are two directors named A & B. A is getting directors remuneration while B is NOT getting directors remuneration. Can this be done and allowed by companies act.
I hope im more clearer in my query.
If you require more details pl let me know.
Thanks.
17th February 2014 From India, Mumbai
Yes this is allowed.
The person getting salary would be an Executive / Whole time Director and the other person would be a non-executive Director.
This is allowed by the Companies Act.
I hope this would help you.
Thanks & Regards,
Avika
17th February 2014 From India, New Delhi
Dear Friend,
Executive Directors who are involved in day to day activities of any company are getting salary like other employees serving in the company, subject to fulfilling companies act with the approval of share holders. In case of Non Executive Directors who attend periodical board meetings are in receipt sitting fees along with reimbursement of hotel,airfares etc.Non Executive Directors do not participate in the day to day activities.
II hope it is clear to you.
Thanks & Regards,
Sibabrata Majumdar
Management Consultant Legal & HR
Kolkata, Mb:9830023706
17th February 2014 From India, Calcutta
Hello
1.Company Director is not entitled for remuneration.Only sitting fee for the Board Meeting attended.
2.If designated as MD, then he can draw remuneration under companies Act.
3.Director is not an employee of the organisation.
Regards
Rajan
19th February 2014 From India, Alandur
Hi,
Thanks for the reply.
If we Incorporate a Company with 5 people named A, B, C, D & E. Then A is MD, B & C are Directors, D is CEO and E is CFO is this possible or is it compulsory that all of them are to be Directors of the Company.
Thanks.
20th February 2014 From India, Mumbai
Reply (Add What You Know) Start New Discussion

Cite.Co - is a repository of information created by your industry peers and experienced seniors. Register Here and help by adding your inputs to this topic/query page.
Prime Sponsor: TALENTEDGE - Certification Courses for career growth from top institutes like IIM / XLRI direct to device (online digital learning)





About Us Advertise Contact Us
Privacy Policy Disclaimer Terms Of Service



All rights reserved @ 2019 Cite.Co™