Office of Place of profit
This query is : Resolved
Muralidharan
(Querist)
07 June 2011
Dear Sirs
During the financial year 2010-11 a private limited company had paid monthly remuneration of Rs.15000/- to a relative of a director. The said remuneration was approved by the Board in March 2010. Approvoal of the Members of the Company was also obtained at the AGM held on 30.09.2010 by way of special resolution.
It is now proposed to increase the remuneration from Rs.15000/- to Rs.50000/-.
Kindly advise whether the company can pay Rs.50000/- as monthly remuneration to the relative of a director.
Kindly advise the procedures to be followed by the company in this regard
with regards
Muralidharan
During the financial year 2010-11 a private limited company had paid monthly remuneration of Rs.15000/- to a relative of a director. The said remuneration was approved by the Board in March 2010. Approvoal of the Members of the Company was also obtained at the AGM held on 30.09.2010 by way of special resolution.
It is now proposed to increase the remuneration from Rs.15000/- to Rs.50000/-.
Kindly advise whether the company can pay Rs.50000/- as monthly remuneration to the relative of a director.
Kindly advise the procedures to be followed by the company in this regard
with regards
Muralidharan
CA Sumat Singhal
(Expert)
07 June 2011
The company can pay remuneration upto RS 50000 without following any extra procedure as company has already passed special resolution...refer sec 314(1B)
if remuneration exceeds Rs 50000 then follow Directors' Relatives (office or place of profit) Rules, 2003..
Sumat Singhal,Indore
if remuneration exceeds Rs 50000 then follow Directors' Relatives (office or place of profit) Rules, 2003..
Sumat Singhal,Indore
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