Applicability of sec. 269,309,310, schedule xiii of co. act

Save Share

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

05 June 2013
A family owned public ltd co. BUT has paid up capital of less than 5 crores. The positions of MD, Dy MD & WTDs are filled up family members only who are drawing monthly remuneration.

My querry is - are sections 269, 309,310, sch xiii applicable to such a co. Do it need to comply with detailed provisions of said sections vis-a-vis managerial remuneration ? If answer is no - then what procedure it should follow regarding appointment/reappointment and/or increase etc of managerial remuneration.

Querist : Anonymous

Querist : Anonymous (Querist)

15 June 2013 Pls reply to above querry....

Ajay Mishra

Ajay Mishra (Expert)
Follow

16 June 2013 Hi

If it is public limited company then above section and Schedule will apply on that company. Whether it is controlled by family members or not.

Querist : Anonymous

Querist : Anonymous (Querist)

19 June 2013 Dear Ajay sir,

Thanks 4 ur reply.
However it appears that I havn't been able to put across my querry correctly.
My querry is not about controlling aspect; rather my question is about the applicability of section 269& sch xiii WHEN though the co. is indeed a public co. but its paid up capital happens to be less than 5 crores. In that event do we need to follow sec269 & schxiii or not ? To put it differently, - do the conditions of a public co. plus paid up capital more than 5 crore are necessary & cummulatively need to be satisfied to invoke sec 269& sch xiii ?

Querist : Anonymous

Querist : Anonymous (Querist)

06 July 2013 Still awaiting response......

Experts pls reply

Ajay Mishra

Ajay Mishra (Expert)
Follow

06 July 2013 As per section 269(1), a public company or a private company which is a subsidiary of a public company, having a paid up share capital of rupees five crores or more shall have a managing or whole-time director or manager.

A public company having less than 5 crore is not required to comply the provisions of section 269 and schedule XIII.

You also check what your company's article says on it.

Querist : Anonymous

Querist : Anonymous (Querist)

22 July 2013 Thanks a lot.....

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now