In case a relative of director is appointed as a manager at monthly salary of Rs. 20000, then whether sec. 314(1) is applicable ?
In act it is clrealy written that Sec. 314(1) not applicable for appointment at the office of MD or manager. But munish bhandari book is not considering this exemption.(though it is considering the exmption of office of MD)
29 October 2011
Sec 314(1) apply in the first case, because the appointment is not in the position of the director, but it is in the position of the manager.
If the Person appointed as the director, 314(1) does not apply. In order to be the managing director, he should be the director first.
30 October 2011
Thanks Vishal sir Tell me one more thing, whether Accounts manager, Production Manager will be included in "Manager" above ? or it only included general manager ?
Bcoz in books & ICAI suggested, they are not exempting Acc Manager, Prod. manager from 314(1). Or there is ammendment in last 2-3 years giving exemptin to manager ?
30 October 2011
"manager" means an individual (not being the managing agent) who, subject to the superintendence, control and direction of the Board of directors, has the management of the whole, or substantially the whole, of the affairs of a company, and includes a director or any other person occupying the position of a manager, by whatever name called and whether under a contract of service or not;
Manager means person(general manager) who has management of whole company affairs.
Accounts manager & production manager not covered in the defination of manager it includes only general manager.
sahil your query is really relevant for experts keep it up dear.....gud
30 October 2011
sahil there is contraversy matter...what is mean by substantially the whole of affairs of the company.....if i take interpration of statue as mischeif rule of hayden...then accounts manager & production manager covered in the defination of manager..because hayden's rule provides remedy to person...suppress mischief.
according to my view you shall consider accounts & production manager in the defination of manager for exemption purpose u/s 314(1).
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