Section 314(1B) of The Companies Act, 1956
This query is : Resolved
CS Ankur Srivastava
(Querist)
26 November 2008
Under section 314(1B) for the appointment of relative of director in the office or place of profit no limit is pescribed. There words are used sum as may be pescribed. What should be the limit when rule 10C of Central Government(General forms and Application) Rules pescribed the limit of Rs. 20000/- and Director Relative(office or place of profit) Rules, 2003 pescribes the limit of 50,000/-.
My contention is that when theres is specifically rules for such appointment why we should look after any other rules and limit should be Rs. 50000/-. Is it correct?
My contention is that when theres is specifically rules for such appointment why we should look after any other rules and limit should be Rs. 50000/-. Is it correct?
26 November 2008
Sir, the said rule has not prescribed the limit. What rule 10 C (2) says is ....... shall not be less than Rs.20000/-. Attn is invited to page 5047 of Guide to companies Act by Mr. A.Ramaiya.
CS Ankur Srivastava
(Querist)
26 November 2008
Sir, when the specific rules are availabe for such appoinemtnt which pescribes the limit of Rs. 50000 why we are concerning with Rule 10C what is the need to see this rule 10C. We can only concerned with director relative(office or place of profit)rules, 2003.
26 November 2008
Yes sir I also feel so. Rule 3 0f Director's Relatives (office or place of profit) rules,2003 will prevail.
CS Ankur Srivastava
(Querist)
26 November 2008
so sir, in case the remuneratin exceeds Rs 20,000/- but limited to Rs 50,000/- can we appoint without the approval of central government. in my opinion we can do so. it is correct?
26 November 2008
YES SIR.
CS Ankur Srivastava
(Querist)
14 January 2011
In this case only Prior consent of shareholders by way of special resolution would require.
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