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Appointment of Manager, relative of director

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Guest (Querist)

18 December 2010 Can director's relative appointed as manager for Rs. 60,000/- p.m. in Pvt.Ltd. Co. Is it Sec.314 applicable.

Is it any limit for the above remuneration

Is it necessary for Pvt.Ltd., co approval from Central Government

Jayashree S Iyer

Jayashree S Iyer (Expert)
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18 December 2010 Yes. Director's relative can be appointed. However special resolution in GM is required as specified in section 314 of the Companies Act. Further the remuneration exceeds the limit of Rs.50,000/- provided in the Director's relatives (office or Place of Profit) Rules,2003. Hence CG approval is also required.

Guest

Guest (Querist)

19 December 2010 Is it necessary for Pvt.Ltd., co approval from Central Government

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