Dear Friends,
My question is what is the difference between an executive Director drawing Director remuneration and a whole-time director getting remuneration.
Because if there are two relatives are directors in a company each drawin remuneration above Rs. 10000/- per month is section 314 is attracted?
However, section 314 is not applicable for appointment of MD, WTD or manager.
Normally MD/WTD whether drawing salary or not are considered as executive director. Rest of the directors are considered as Non-executive directors. Promoters of the company are not executive director automatically.
Hence there is no difference between an executive Director drawing Director remuneration and a whole-time director getting remuneration.
In your case section 314 is not attracted presuming that they are not drawing anything over and above the remuneration they are entitled to i.e. Rs. 10,000.
Regards
Gupta Sachdeva & Co. Chartered Accountants
New Delhi
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