But all that has changed already
151. In section 314 of the principal Act,—
(a) for sub-section (1), the following sub-section shall be substituted, namely:—
“(1) Except with the consent of the company accorded by a special resolution,—
(a) no director of a company shall hold any office or place of profit, and
(b) no partner or relative of a director or manager, no firm in which, a director, manager or a relative of a manager, director, is a partner, no private company of which a director, a manager is a director or member, and no director or manager of such a private company, shall hold any office or place of profit carrying a total monthly remuneration of such sum as may be prescribed , except that of managing director or manager, banker or trustee for the holders of debentures of the company,—
(i) under the company; or
(ii) under any subsidiary of the company,
unless the remuneration received from such subsidiary in respect of such office or place of profit is paid over to the company:
Provided that it shall be sufficient if the special resolution according the consent of the company is passed at a general meeting of the company held for the first time after the holding of such office or place of profit:
Provided further that the appointment of a relative of a person holding more than two per cent. of the equity of the company or the relative of any director of the company, shall require the approval of the Central Government if the remuneration exceeds such sums or such percentage of profits or turnover as may be prescribed.
Explanation.—For the purposes of this sub-section, a special resolution according consent shall be necessary for every appointment in the first instance to an office or place of profit and to every subsequent appointment to such office or place of profit on a higher remuneration not covered by the special resolution, except where an appointment on a time scale has already been approved by the special resolution.
(b) sub-section (1B) shall be omitted;
(c) sub-sections (2A), (2B), (2C) and (2D) shall be omitted;
(d) after sub-section (4), the following sub-section shall be inserted, namely:—
“(5) This section shall not apply to a private company unless it is a subsidiary of public company.”.