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

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)
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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)
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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.....

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