Is section 314 of the companies act applicable if Director of subsidiary company is working as an employee in holding company and drawing remuneration from both the companies as director and as employee.
Rakesh Dhanuka (Company Secretary) (478 Points)
15 March 2012Is section 314 of the companies act applicable if Director of subsidiary company is working as an employee in holding company and drawing remuneration from both the companies as director and as employee.
Jitendra Vyas
(Commercial Officer)
(178 Points)
Replied 15 March 2012
Yes section 314 is applicable if director is holding place of profit in company.
Jaideep
(Service)
(1368 Points)
Replied 15 March 2012
Hi,
Section will not be applicable in case Director of Subsidary Company is MD or ED of Holding Company.
Regards
Jaideep
Rakesh Dhanuka
(Company Secretary)
(478 Points)
Replied 15 March 2012
He is not ED or MD in holding company, he is working in holding company as an employee - General Manager (finance dept) and director in its subsidiary company.
Hi Rakesh,
1. Section 314 applies only to that company (and not to its holding or subsidiary, what ever the case could be), where a non executive director receives any material benefit other than commission, sitting fees etc.
2. It doesnot apply to any such situation, where a director receives any Compensation for any such services done on Professional Capacity.
Henceforth, donot confuse, carry forward. Director/s can receive compensation for services rendered under a professional capacity.
Regards,
CAclubindia
