Sec 314

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DHAVAL R ASHAR (Querist)
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17 December 2011 Respected experts,
If a pvt ltd company pays Rs 5,00,000 to its director then whether it would come under sec 314 of the companies act

Pls clarify.

CS Suraj Arora

CS Suraj Arora (Expert)
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17 December 2011 Dear Mr.Dhaval

If the Company pays 5 Lac as remuneration then Provisions of Section 314 of the Act are not applicable

Further if Director holds any office or Place of Profit then the Provisions of section 314 of the Act are applicable as Suppose he is Sole selling Agent of the company then we have to go for central Govt Approval

Guest

Guest (Expert)

17 December 2011 If director receives any thing over and above to which he is entitled as director then 314 is applicable.

In your case it is not applicable.

It is better to appoint such director as MD or WTD since these designations are covered in exceptions.

Charu Srivastava

Charu Srivastava (Expert)
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17 December 2011 Agree with the experts.

DHAVAL R ASHAR

DHAVAL R ASHAR (Querist)
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19 December 2011 HI Neha Maam ,

Can u pls clarify, if the director of the company is getting a professional fees Of Rs 5,00,000/- P.M. whether it is neccesary as per sec 314 to pass special resolution in this respect.

Thanks for previous reply

Guest

Guest (Expert)

19 December 2011 Hi dhaval,

if director is getting professional fees then section 314 will be applicable and you need to pass special resolution.

Regards, Neha

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