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Managerial remuneration - ceiling limit

Adoni Raghavendra

What is the ceiling Limit for payment of Managerial remuneration/Commission or both to the directors of Private Limited Company as per the companies act 1956. And also let me know the particular case laws available pertaining to this issue.

Private Companies Can Pay Directors Unlimited Remuneration, No Ceiling Under Companies Act 1956 A query was raised regarding the ceiling limit for managerial remuneration or commission to directors of a private limited company under the Companies Act 1956. A response indicated that private companies have the freedom to pay any amount of remuneration to their directors, implying no statutory ceiling limit applies in this context. (AI Summary)
Corporate Laws / SEBI / LLP
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Surender Gupta on Feb 19, 2009
Private companies are free to pay any remuneration to its directors.
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