Company law-related to section 314

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chanchal (Querist)
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29 October 2012 Dear ALL

Please tell me if we appoint a director in our company who is related to other director then whether section 314 of the companies act is applicable or not.

Ajay Mishra

Ajay Mishra (Expert)
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29 October 2012 Hi

Section 314(1B) will be applicable if the such director relative is appointed in the company.

But, if such relative is a relative of managing director or manager and he draw remuneration less the Rs. 250000/-pm then section 314 will not apply.