05 October 2007
A Company is having 3 Directors in whole time employment and they draws monthly remuneration. Is there any P.F. Liability for the Company towards this 3 whole time directors?
As per Sch VI the Company shall disclose the managerial remuneration paid to Directors including P.F. if any.
But Directors are not considered as employees.
As per the provisions of the Employees Provident Fund Act the director who is in full time employment of the Company is also an employee.
05 October 2007
AS A PART OF DIRECTOR'S REPORT OF ALL COMPANIES LISTED OR UNLISTED -THE STATEMENT UNDER 217(2A)READ WITH COMPANIES (PARTICULARS OF EMPLOYEES) RULES 1975- UNDER THE COMPANIES ACT- STIPULATES THE TERM REMUNERATION AS INCLUDING ALL PERKS AND MONETARY VALUE OF ALL BENEFITS INCLUDING SALARY AND P.F ETC... THIS MEANS REMUNERATION IS COST TO THE COMPANY. IN COMPANIES ACT THERE CANNOT BE TWO DIFFERENT POSITIONS IN TWO DIFFERENT SECTIONS OR PARTS LIKE SCH. VI OR SEC 217. SO YOU HAVE TO TAKE A SINGLE VIEW FOR ALL MATTERS. R.V.RAO
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