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297 or 309 or 314

478 views 2 replies

Dipjyoti Majumdar

CA in service & CS. dipmaj@

3487 Points Joined June 2011

Friends

I saw this query posted somewhere else. If a company enters into an agreement with a non-executive director for his rendering strategic services to the Company for a period of one year and payment of remuneration for such services will it come under Sec 297 or 309 or 314.

Please let us discuss

Regards,

Replies (2)

Dipjyoti Majumdar

CA in service & CS. dipmaj@

3487 Points Joined June 2011

Friends

Any responses please.

Regards,

CS Mitesh Mehta

Company Secretary

17139 Points Joined January 2009

In the DCA View,Section 297 does not apply to a contract for professional services, personal services or to employment contracts. If director provides services by holding a whole -time position under the company, provisions of section 198, 309 is applicable. 314 is not applicable Where a director provides the services on case-to-case basis or on regular or retainer basis, section 198,309 etc and that of Section 314 are prima faice applicable.