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Whether Section 197 is applicable to a private company, i.e. whether there are any restrictions in payment of remuneration to an ordinary director in a private company whether there are adequate profits or not or whether there are losses?

Section 197- Overall maximum managerial remuneration and managerial remuneration in case of absence or inadequacy of profits.

Posted By: Hemal 9 year(s) ago

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Bhavin Sheth

Regarding Section 197, there are two views as one view is clear that's not applicable to private companies while i support second view where some people go to the extent in detail that Section 197(1) which is in terms of percentage of remuneration payable is applicable to public company only but section 197(3) is applicable to both private as well as public.

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