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Query ragarding Directors remuneration on 11th October 2009, 11:05 am
deepika
Hello sir can some one please answer me of this question-
PQR Ltd. is paying remuneration to its non-executive directors in the form of commission at the rate of one percent of the net profits of the company distributed equally among all the non-executive directors. The company is providing depreciation on SLM basis at the rates specified in Schedule XIV to the Companies Act, 1956.The Comapny seeks advice in respect of the following:
(1.)Whether it is necessary to make adjustment in respect of depreciation for the purpose of arriving at the net profit of the company to determine the quantum of remuneration payable to its non-executive directors.
(2.)Is it possible to pay minimum remuneration to non-executive directors besides sitting fees in the event of loss in a financial year?
My doubt is that i am not understanding depreciation point.
PQR Ltd. is paying remuneration to its non-executive directors in the form of commission at the rate of one percent of the net profits of the company distributed equally among all the non-executive directors. The company is providing depreciation on SLM basis at the rates specified in Schedule XIV to the Companies Act, 1956.The Comapny seeks advice in respect of the following:
(1.)Whether it is necessary to make adjustment in respect of depreciation for the purpose of arriving at the net profit of the company to determine the quantum of remuneration payable to its non-executive directors.
(2.)Is it possible to pay minimum remuneration to non-executive directors besides sitting fees in the event of loss in a financial year?
My doubt is that i am not understanding depreciation point.