Can an Independent Director be on your company’s payroll?
Independent Directors play a crucial role in ensuring objective decision-making, accountability and transparent corporate governance. Their remuneration, however, must be structured carefully and in accordance with applicable law.
Improper remuneration arrangements may raise concerns around:
1. Independence: Maintaining the distinction between governance and executive roles.
2. Tax & GST: Understanding the applicable TDS provisions and GST implications.
3. Regulatory Compliance: Avoiding potential compliance issues and scrutiny during audits and due diligence.
The key takeaway?
Remuneration structures must be legally compliant while preserving the independence of the board.
At A K Salampuria & Associates, we believe sound compliance is not just about meeting statutory requirements—it is about building stronger governance and long-term business credibility.
#CorporateGovernance #IndependentDirector #CompaniesAct2013 #RegulatoryCompliance #BoardGovernance #CorporateAdvisory
Will an Independent Director Be on Your Payroll?
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