Sec 314 - office of profit.

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Abhijit Rane (Querist)

27 June 2011 Dear all

If a company employs on retainership basis the brother of the managing director as consultant providing his professional services who is being paid more than 50,000/- per month will he be attarcted under sec 314 of the companies act for which approval of central govt. should be taken (This is a Private Company).
Plz Guide..

Regards

Abhijit

CS Bijoy

CS Bijoy (Expert)

27 June 2011 According to me when any relative or friends of the Director is appointed in the place of profit or holding office of the company only than Section 314 of the Companies Act is attracted and if the remuneration is exceed 50000/- month than prior approval of the Central government is required.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)

27 June 2011 Bijoy Ji

Rule 3 of Director's Relatives (Office or Place of Profit) Rules modified.
Monthly Remuneration, in case of appointment of relatives of directors with approval of CG, raised from Rs. 50,000/- to
Rs. 2,50,000/-

Abhijit Rane

Abhijit Rane (Querist)

27 June 2011 Dear Mr.Warrier,

Plz can i get the notification which says the same has been extended from Rs. 50,000 to Rs. 250000/-

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)

27 June 2011 Pl see the notification in https://www.mca.gov.in/Ministry/notification/pdf/GSR_614(b)_6apr2011.pdf

Abhijit Rane

Abhijit Rane (Querist)

27 June 2011 Thank u sir..

Regards

Abhijit

Abhijit Rane

Abhijit Rane (Querist)

29 June 2011
Dear Mr. Warrier

so in this regard i dont have to take central govt. approval. only the general meeting resolution will suffice our purpose.

Regards,

Abhijit

Saroja

Saroja (Expert)

29 June 2011 My opinion
Special Resolutions and Central Gvt Approval is required because the MCA there is given only in Notification but Not Circulating so My point is Both Special Resolution and CG Approval Must.,

So u can Consider the Notification , only when it Circulating k.,

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