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Benefits of Elected Board of Trustees

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1 Benefits of Elected Board of Trustees on Sat Jan 07, 2012 11:08 pm

aizle


Arresto Menor
good day!
As practice in our company, we have this bonus called "Management Incentive" every end of the year, It is equivalent to 1% of the Net income for the year and to be distributed to officers and employees. My questions are:
1. Is there any ruling/law particularly in profit-sharing of companies?
2.Are the Board of Trustees entitled to this benefit since it is called "Management Incentive"?
Thank you and looking forward for reply. God bless!

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2 Re: Benefits of Elected Board of Trustees on Wed Jan 11, 2012 10:34 pm

attyLLL


moderator
is this a stock corporation or a non-profit?


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3 Re: Benefits of Elected Board of Trustees on Sat Jan 14, 2012 10:06 pm

aizle


Arresto Menor
we're a non-stock, non-profit company po.

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4 Re: Benefits of Elected Board of Trustees on Sun Jan 15, 2012 11:50 am

attyLLL


moderator
the corp code dictates that any profit made should be used for the purpose of the organization, although my opinion a 1% of net income can be defensible as allowable extra income for the employees, but it should be presented as income not profit sharing.

any compensation to the directors should be clearly provided for in the by-laws. they are allowed up to 10% of net income before tax.


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5 Re: Benefits of Elected Board of Trustees on Sun Jan 15, 2012 2:43 pm

aizle


Arresto Menor
thank you atty.
another question po?
what if ang compensation po na nakalagay sa by-laws is only the per diem, and aside from per diem they are receiving other allowances such as travel, representation expense, do you think it is a violation or the corp code?
as far as i could dig in the records only board resolutions increasing such allowances lang po ang nakita ko. i don't have any idea kung kelan po nag start ang mga ganitong benefits nila.
thanks po uli!

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6 Re: Benefits of Elected Board of Trustees on Mon Jan 16, 2012 10:10 pm

attyLLL


moderator
those are not necessarily income, but they are allowances for expenses.


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