Place of profit

Save Share

This query is : Resolved

anita (Querist)

24 March 2010 if son of a Director is appointed at a salary of more than Rs. 21000 per month, will provisions of Place of profit apply?

CS Vandana Kacholia

CS Vandana Kacholia (Expert)

24 March 2010 Section 314(1B) will be applicable in the case when any relative of director is drawing more than Rs. 50,000 per month as a salary.

others views are also solicited

Regards

Ankur Garg

Ankur Garg (Expert)

24 March 2010 Before appointment on the salary of 21000 you have to obtain previous approval of shareholders by way of special resolution u/s 314(1B).

However where salary is more than 50000 prior CG approval is also requited in addition to previous approval of shareholders by way of special resolution u/s 314(1B).

anita

anita (Querist)

25 March 2010 Sec 314 (1B) says "monthly remuneration (not less than Rs. 20000) Proir concent by SR is required and CG approval"

and means??

CA Ashok Kumar Sahu

CA Ashok Kumar Sahu (Expert)

25 March 2010 and means both are mandatory

anita

anita (Querist)

25 March 2010 so that means in case of Rs. 20000 and above CG approval is required???

and if the son receives remuneration which he is entitled to, then is the sec attracted???

Plz answer completely.

CA Ashok Kumar Sahu

CA Ashok Kumar Sahu (Expert)

25 March 2010 now the limit is 50000 instead of 20000/-

hence CG approval is not required

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now