I'm working as a Manager in Limited company. Can I become Director in same company. If yes, what happens to the salary entitled as manager. Does Director get salary or renumeration.
A directorship is an office, not necessarily an employment. If, however, the company enters into a service contract with the director, the terms of which make the director an employee under the usual common law test, then the director becomes an employee.
Your employment will seize and you will be designated as director.
Hello,
Yes you can become the same.
You will get remuneration for the post that you will be holding in the company in case you are not joining the company with some shares.
Regards
you can be appointed as director of company
2)
Highest limit for Remuneration to a Director
Company having capital Less than 5 crores 30 lakhs
5 crore or more but less than 100 crore 42 lakhs
100 crore or more but less than 250 crore 60 lakhs
250 crore and above 60 lakhs along with 9.99% of the capital in excess of Rs. 250 crore
See you can become director but once you are director you will receive remuneration not salary as manager.
The director may get something or nothing depending upon the work profile he has in the company.you may be an employee and also a director and you may get salary pertaining to your work.
Regards
1. The Manager can be elevated /appointed as Director, by following due procedure of law and a BOD resolution, defining the Remuneration & Perks& other benefits, payable under the provisions of the Companies Act.
Keep Smiling .... Hemant Agarwal
Director gets reenumeration and employee can be director
A salaried person can also be a director in the company what are the various reason so you can be a director and you may be able to take part in the board meetings and other formalities that is to be discharged by the director there is nothing wrong in that arrangement
A employee can be director in same company.
As per the section 197, prescribed the maximum ceiling for payment of managerial remuneration by a public company to its director, whole time director or manager should not exceed the 11% of the net profit of the company in that financial year computed in accordance with section 198 except that the remuneration of the directors shall not be deducted from the gross profits.
The public company in the general meeting may consent the payment of remuneration exceeding the 11% of the net profits of the company with the approval of central government and provisions of Schedule V. The net profits for the purpose of this section should be computed as per guidance adopted in section 198.
In case if there is only one managing director or whole time director, the remuneration payable by public company shall not exceed 5% of the net profits of the company.
Wherein a public company is having more than one such director then total remuneration payable by public company to them shall not exceed 10% of the net profits of the company.
The remuneration payable to directors who are neither managing directors nor whole-time directors shall not exceed 1% of the net profits of the company, if there is a managing or whole-time director or manager.
The remuneration payable to directors who are neither managing directors nor whole-time directors shall not exceed 3% of the net profits of the company, if there is no managing or whole-time director or manager.
If the company decides in a board meeting or a resolution is passed to elevate the manager to one of its directors, the manager can be appointed as a director.
The remuneration of the director shall be fixed in the resolution that has been passed in the board meeting.
Since you cease to exist as manager you may not be entitled to the salary of manager anymore.
