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.
From India, Mumbai
3I 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.
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.
From India, Mumbai
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.
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
From India, New Delhi
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
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
From India, Calcutta
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
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
From India, Alandur
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
From India, Alandur
Community Support and Knowledge-base on business, career and organisational prospects and issues - Register and Log In to CiteHR and post your query, download formats and be part of a fostered community of professionals.
Payroll.xls
Payroll.doc
Folklore Payroll.pdf