#AskPS
Ashwini Nair .

If a salary is paid to the director of a company, can they be paid for say 4 months and if they no longer wish to take a salary can they stop the payment?

Or is it that if a director starts withdrawing a salary, they have to keep withdrawing it every month? Can the amount change?

If one wanted to withdraw a limited amount and not necessarily withdraw fixed salary every month, is there another option? What would be the best way to go about this?

I would appreciate it if any CAs could help me with what is legally possible?

Originally Posted Here
6 Comments

Kshitij Patil

Since Directors draw Remuneration and not Salary, the amounts and timelines for the same CAN be inconsistent.

Rushabh Vora

Yes its not necessarily to withdraw fixed amt every month as Director's Remuneration.

Vaibhav Gupta

It can be inconsistent, no need to worry.😊

Rajesh Durai

As per companies act there's no restrictions on managerial remuneration. Strict provisions applicable only for public limited companies. So Directors can withdraw or choose to forfeit as per company financial situation. End of Financial year they can calculate and file in RoC.

Vinav Bhanawat

Not sure what would be the purpose behind keeping inconsistent renumeration. What I personally follow is slightly different and more relevant approach I believe.
As director of the company you must’ve fixed remuneration on your name and should be filed as well but you can skip taking the money out against the remuneration. So that your time is valued consistently for whatever years you work and are eligible for taking the entire remuneration at once when you wish/want to from the company. This is very helpful when you plan to add more partners or investors in near future.
Hope it helps.

Apoorva Modi

If its private company then no restrictions on quantum of salary and time for crediting the same.
He /she can even opt for no salary option. Not necessary that salary has to be credited to directors account. If want to increase the salary amt then simply pass a resolution and can do that as well.
And if want to withdraw amount other than as salary then it might attract director loan provisions or can be taken as dividend if directors are owners as well of the company

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