ARE DIRECTORS PAID SALARIES?

ARE DIRECTORS PAID SALARIES?

September 24, 2018

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

 

The information in this blog post (“post”) is provided for general informational purposes only, no information contained in this post should be construed as legal advice, nor is it intended to be a substitute for legal counsel on any subject matter. No reader of this post should act or refrain from acting on the basis of any information included in, or accessible through this post without seeking the appropriate legal or professional advice from the particular facts and circumstances at issue from a lawyer.This post is protected by intellectual property law and regulations. It may however be shared using appropriate sharing tools provided that our authorship is always acknowledged and this Disclaimer Notice attached.

 

 

 

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