08 October 2013
Son of MD appointed in july 2013 on a stipend of 20K for 6 months in pvt company 1.which are the provisions that will be applcable 2. prior approval required or not 3. BR or Special resolution
Circumstances u/s 314(1) under which special resolution is not applicable:
Under the following circumstances, the special resolution shall not be required for appointment of a person on the office or place of profit:— 1. If the monthly remuneration is less than Rs. 10,000 p.m.; 2. If the office or place of profit held by such person(s) in the capacity of managing director/whole-time director/manager/banker/debentureholder trustee; 3. If relative of director has been appointed before becoming director in the company; 4. If director of subsidiary company hold office or place of profit in holding company; 5. If such person is rendering professional advice to the company including director who is consulted or who gives his professional advice to the company occasionally and receive remuneration for such service; 6. If a company purchases or sell materials from or to a director of the company or any of the persons mentioned above to which section 297 will apply. Any person appointed to an office of agent for the sale of the output of the company will be deemed to be holding an office or place of profit under section 314(1).
10 October 2013
But the MD and Director or not holding any place of profit. He is only director of the company.
Relative will come under section 314 when the director too will come under this section. If firstly director is not covered then why their relative will cover.
CAclubindia
