TaxTMI 
TaxTMI 
Dear
Can we pay director remuneration more than 11% of profit , without any permission of central govt.
[shanker bansal]
DIRECTOR REMUNERATION LIMIT
25 Apr 2012 
2 Replies 
9481 Views Asked by
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Director remuneration limits: public companies face statutory caps while private companies enjoy exemption from government approval.
Public companies face a statutory ceiling on managerial remuneration computed on net profits, including a specific aggregate cap for managing/whole time directors; private companies not subsidiary to a public company are generally exempt from Central Government approval and statutory remuneration limits. Central Government approval is required only in specified exceptional situations such as certain convictions or detention, prescribed age or residency exceptions without a special resolution, or where proposed remuneration exceeds the schedule thresholds, and excess payment in applicable cases engages the approval and compliance framework. (AI Summary)
Public companies face a statutory ceiling on managerial remuneration computed on net profits, including a specific aggregate cap for managing/whole time directors; private companies not subsidiary to a public company are generally exempt from Central Government approval and statutory remuneration limits. Central Government approval is required only in specified exceptional situations such as certain convictions or detention, prescribed age or residency exceptions without a special resolution, or where proposed remuneration exceeds the schedule thresholds, and excess payment in applicable cases engages the approval and compliance framework. (AI Summary)