Question

Director’s remuneration is calculated on the basis of , *


1) Post incorporation period

2) Turnover Ratio

3) Time Ratio

4) Pre incorporation period​

Answer 1

Answer:

post incorporated period

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Answer 2

Director’s remuneration is calculated based on Post incorporation period.

According to 2(78) of the Companies Act, 2013, any cash paid in any structure or by any name to a director for administrations delivered by him will add up to 'remuneration' and any advantage given by organization to a director will add up to 'remuneration and financial equivalent should be included for remuneration of the chief directors. The profit margin procured after the date of acquisition of business is known as post-incorporation or post-acquisition profit.