Hello There For new form Pvt Ltd company,Can Two Directors have salary?If Yes,Who will decide the salary? The same way who can decide the Founder of the companys salary? Thanks Rahul
From India, Mumbai
From India, Mumbai
1- Yes. One can’t expect anyone to work for free. 2 & 3 - Discuss with your seniors. warm regards.
From India, Delhi
1426From India, Delhi
The salary of directors is decided by the company when it issues the appointment letter.
In general the board of directors are authorised to decide salary of individual directors subject to overall limit (if any) set by the shareholders in a general meeting. However, in such a decision by the board, the directors concerned are considered as "interested" and can not vote on the proposal.
First directors salary and terms should be either as per the Articles of Association or as decided by the Shareholders in the general meeting.
In reality, it is the owners / promotors that decide the salary of directors or founders. The same is implemented by the company. So, what ever they decide is fine, dont try to argue with it.
From India, Mumbai
In general the board of directors are authorised to decide salary of individual directors subject to overall limit (if any) set by the shareholders in a general meeting. However, in such a decision by the board, the directors concerned are considered as "interested" and can not vote on the proposal.
First directors salary and terms should be either as per the Articles of Association or as decided by the Shareholders in the general meeting.
In reality, it is the owners / promotors that decide the salary of directors or founders. The same is implemented by the company. So, what ever they decide is fine, dont try to argue with it.
From India, Mumbai
if you want a proper answer, you need to share the complete information. else you will get incomplete information which may not suite your situation. Please give the complete details.
From India, Mumbai
From India, Mumbai
Here is the situation.
We are getting funding from UK company to start a setup here in India.
There are two main person who will look after this company.
Now the qustion is what will be the position of this two people?what will be there salary?
Who will decide there salary?what are there resposibilities?
From India, Mumbai
We are getting funding from UK company to start a setup here in India.
There are two main person who will look after this company.
Now the qustion is what will be the position of this two people?what will be there salary?
Who will decide there salary?what are there resposibilities?
From India, Mumbai
The terms of funding - both the term sheet and the MOU that the promotors sign will have explicit clause about every aspect of the business and the relationship between promotors and the business including salary to directors. If the salary is not mentioned, then the directors can not get salary as it will be in violation of term sheet. If at a later date they want a salary, then they should take approval of shareholders in the manner laid down by the Articles of Association, term sheet and MOU with investors.
As a general rule, you don't take any money from the company that has not been disclosed before to the investors in the business plan and in term sheet. Or if you do, then it must be with approval of investors.
From India, Mumbai
As a general rule, you don't take any money from the company that has not been disclosed before to the investors in the business plan and in term sheet. Or if you do, then it must be with approval of investors.
From India, Mumbai
Hello Rahpawar,
Further to what Saswatabanerjee mentioned, your most last posting/response STILL lacks clarity/details.
You mentioned "We are getting funding from UK company..........". What's the Stage of the Funding Agreement/MOU? Has it been signed & sealed?
If Yes, the UK entity would surely have incorporated the Indian Directors wages--which usually includes some sort of revenue/turnover linked Salary. Pl check out the Agreement.
If No, then it all depends on what sort of funding arrangement is being worked-out--many times the investing entity asks for place on the Board of the Company--so what you or the Indian Directors may think on this issue may not be realistic. It has to be OKed by the investing UK entity.
Reg who will be the Head of this company, every Private Limited Company's Head is it's Managing Director--who again is decided by the Board of Directors. Since there are only 2 Directors, one of them will have to take up this designation & responsibilities.
And like Saswatabanerjee mentioned, in reality, it's the investing entity./individual who will have a major say in this decision/selection.
Rgds,
TS
From India, Hyderabad
Further to what Saswatabanerjee mentioned, your most last posting/response STILL lacks clarity/details.
You mentioned "We are getting funding from UK company..........". What's the Stage of the Funding Agreement/MOU? Has it been signed & sealed?
If Yes, the UK entity would surely have incorporated the Indian Directors wages--which usually includes some sort of revenue/turnover linked Salary. Pl check out the Agreement.
If No, then it all depends on what sort of funding arrangement is being worked-out--many times the investing entity asks for place on the Board of the Company--so what you or the Indian Directors may think on this issue may not be realistic. It has to be OKed by the investing UK entity.
Reg who will be the Head of this company, every Private Limited Company's Head is it's Managing Director--who again is decided by the Board of Directors. Since there are only 2 Directors, one of them will have to take up this designation & responsibilities.
And like Saswatabanerjee mentioned, in reality, it's the investing entity./individual who will have a major say in this decision/selection.
Rgds,
TS
From India, Hyderabad
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