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Can a director lease out his personal property to employees

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Querist : Anonymous

Querist : Anonymous (Querist)

25 February 2014 A director wants to lease out his personal property to the employees of the company on rent. Can he do so? Does any provision of law prevents him from charging rent from the employees of the company.?

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)

25 February 2014 1. A director can lease out his PERSONAL property to the employees of the company in which he is a director since it is an agreement between the director & the employees.

2. Further, the property is the personal property of the director & not of the company.

3. However, you have to ensure that rent amount is NOT deducted from the salary of the employees. The company should NOT have any transactions regarding rental.

Querist : Anonymous

Querist : Anonymous (Querist)

26 February 2014 Thnq vary much for your gental answer and quick answer.

AS the director is providing property on rent to the employees of the company, director wants the rent to be deducted from the salary before the salary is credited to employees account. Can the same can be done?
If not then why?

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