Type of resolution
This query is : Resolved
08 July 2013
Sir, will you please tell me that what type of resolution should be passed in case of increase in remuneration of whole time director and also in case of relative of director if remuneration will be increased under special business.
Ajay Mishra
(Expert)
08 July 2013
Hi
If you are increasing remuneration of WTD with in the profit limit, then only ordinary resolution is sufficient.
In case, the company has inadequate profit or nil profit and paying remuneration as per Part II Section II (B) and (C), then special resolution will be required.
The above two case will apply on public company of subsidiary private company and not on private limited company.
If you are increasing remuneration of WTD with in the profit limit, then only ordinary resolution is sufficient.
In case, the company has inadequate profit or nil profit and paying remuneration as per Part II Section II (B) and (C), then special resolution will be required.
The above two case will apply on public company of subsidiary private company and not on private limited company.
Ajay Mishra
(Expert)
08 July 2013
Payment of remuneration of relative of director will covered under section 314 of the Companies Act, 1956 and in that case Special Resolution will be required to be passed.
The condition is director also receive the remuneration from company.
The condition is director also receive the remuneration from company.
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