Section 314
This query is : Resolved
08 December 2010
Hi...
There is a Company say ABC Ltd. having 3 Directors Mr.A,Mr.B and Mr.C. Mr. B is brother of Mr. A and is appointed as MD of Director of the Company. Now, as per the provisions of section 314 of the Companies Act, 1956 a relative of Director can hold the office of MD or Manager carrying a monthly remuneration of Rs.15,000/-. Now, since Mr. B is holding the office of MD carrying the monthly remuneration of over and above Rs.10,000, no approval of the members by way of a Special Resolution will be required.
Suppose, Mr. B ceased to be a MD of the Company w.e.f.27.04.2010 and continues to be a Director of the Company with the same remuneration, then whether it can be said that Mr.B is holding the office or place of profit from the date he ceased to be MD of the Company. Whether the consent of the members by way of a special resolution should have been obtained at the GM of the Company held immediately after he ceased to be MD but continued as Director of the Company??????
Please held??????
There is a Company say ABC Ltd. having 3 Directors Mr.A,Mr.B and Mr.C. Mr. B is brother of Mr. A and is appointed as MD of Director of the Company. Now, as per the provisions of section 314 of the Companies Act, 1956 a relative of Director can hold the office of MD or Manager carrying a monthly remuneration of Rs.15,000/-. Now, since Mr. B is holding the office of MD carrying the monthly remuneration of over and above Rs.10,000, no approval of the members by way of a Special Resolution will be required.
Suppose, Mr. B ceased to be a MD of the Company w.e.f.27.04.2010 and continues to be a Director of the Company with the same remuneration, then whether it can be said that Mr.B is holding the office or place of profit from the date he ceased to be MD of the Company. Whether the consent of the members by way of a special resolution should have been obtained at the GM of the Company held immediately after he ceased to be MD but continued as Director of the Company??????
Please held??????
09 December 2010
If he continues to be WTD of the Company and does not draw any remuneration other than stated above, he will not be said to hold office of office or place of profit.
09 December 2010
Hi...
But the case represents the relative of Director holding the office as a Director in the Company and can be said to hold the office or place of profit if he is drawing remuneration in excess of Rs.10,000
But the case represents the relative of Director holding the office as a Director in the Company and can be said to hold the office or place of profit if he is drawing remuneration in excess of Rs.10,000
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Itr 1 processing
- Off Market debit and credit transaction
- Showing Gift from relative in ITR for this year
- ITR 2 Short Term gain & Long term gain
- Share accounting-->fifo - capital gain - period as per fifo?
- ITR selection for salaries and capital gain less than L
- Short Term Capital gain on shares bought and sold after 2018 onwards
- ITR returnFY25-26
- Form 10E u/s 89(1). Need clarification because experts opinions differ !!!!
- INCOME TAX ON REDEVELOPEMENT OF FLAT
- Reporting Income under Section 44ADA
- ITR 1: Details for showing Exempt Income
- Gst invoice numbering and delivery challan numbering
- Sales amount in Gstr1
- E Commerce GSTR1 & 3B how to file
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
- Form10BD was uploaded successfully without any Error but after 24 hours, Form10BE are not available
- Annexure B utility for GST Refund
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
