02 February 2012
Request to all professional friends,
If a person is appointed a director in a private company and drawing nil remuneration. Some time later, that director remuneration is increased from nil to Rs.100000/-. In this case, shall section 314(1)be applicable on him? Does he fall in place or profit of place category prescribed in the said section?
In my opinion a director shall be deemed to hold office or place of profit in a Company if he is receipt of anything from the Company as remuneration over and above the remuneration he receives as Director of the Company.
In your case since he is drawing remuneration as Director only, it cant be held that he is holding office or place of profit in the Company.
CAclubindia
