ARE DIRECTORS PAID SALARIES?
Directors are either paid salaries or remuneration, depending on whether the director is an executive or a non-executive director, to know the difference, refer to the post on directors- https://www.618bees.com/article/182-who-is-a-director
Executive directors are paid salaries while non-executive directors are paid sitting allowances and other remuneration agreed to by the company.
Remuneration of directors, unless fixed by the articles of association of the company (which can only be changed by special resolution), shall be determined by members in general meeting. Note that the company is not bound to pay directors remuneration, but same shall be paid where the Company agrees.
As part of remuneration, directors may be paid all travelling, hotel and other expenses properly incurred by them in attending and returning from meetings of the directors or any committee of the directors or general meetings of the company or in connection with the business of the company.
Remuneration of a managing director
A managing director shall receive such remuneration (whether by way of salary, commission or participation in profits, or partly in one way and partly in another) as the directors may determine. Where he performs some services without a contract, he shall be entitled to payment on a quantum meruit basis.
Best Regards,
Team 618 bees
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