Companies act....sec 314

Hi Akarsh Goyal

Section 314 of the Companies Act, 1956 says about Holding office or place of profit. 

Purpose: To restrict any person holding office or place of profit. to AVOID MISUING OF FUNDS AND AVOIDS IMPROPER SIPHONING OF FUNDS.

Applicability: Both Private and Public companies, where directors remuneration is excess of Rs.50,000, other persons any amount received as remuneration and for body corporate any amount received as remuneration.

Section Applies to: Individuals, Firms and Body corporate.

Individuals : 1. Directors, 2. Relative of director, 3. Partner of director /relative of director, Director / member of a private company.

Firms : 1. Directors, Partner and 2. Relatives of partner

Body Corporate: 1. Director or Relative of Director of a private company, is director or partner in other company or firm.

The provision has two sets of conditions:

Ist set of conditions u/s 314(1):