Section 314 w.r.t. private company

Save Share

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

11 October 2012 The Directors of a private Company are appointed since the time of its incorporation and they all are relatives of each other? Does sec. 314 applies in this case?
& if the Board decides to pay remuneration to one of such Director now? how is section 314 applicable... Kindly reply asap

Ajay Mishra

Ajay Mishra (Expert)

11 October 2012 Hi

As per section 314(3), a director is said to be holding 'Office or Place of Profit' in a company, if he obtains from the company in addition to the remuneration to which he is entitled as a director any salary, fees, commission or any other perquisites while holding the office of a director.
An individual other than a director or any firm, private company or body corporate is said to be holding office or place of profit in a company, if they obtain from the company, by way of remuneration, any salary, fees, commission or any other perquisites while holding the office or place of profit in the company.

Querist : Anonymous

Querist : Anonymous (Querist)

11 October 2012 But what if a Director(who is not receiving any remuneration)but relative of such Director is paid remuneration in the Company?? plz.reply

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now