Can a Director's Spouse become an employee in a private limited company? If yes whether there is any limit in the salary paid to spouse? Kindly let me know the requirements for the same.
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Can a Director's Spouse become an employee?
Replies (5)
Read section 314.
Hello!
Yes a spouse of director can be a employee in pvt co, bt at the same time ensure the compliance u/s 314 of Co. Act.
Regards
Nidhi
Agree with Nidhi............
But there is some limit U/S 314.
According to section 314(1), If any relative of the director take the remuneration in whatever kind i.e. salary, commision etc exceeding Rs.10,000/- p.m.then the Only Special Resolution should be passed.
But According to the section 314(1B), If any relative of Director take remuneration exceeding Rs.20,000/-p.m. then both the Special Resolution and Central Govt. approval is required.
Regards,
Love Kumar
Hello,
Sec 314(1)- monetary limits and approvals
|
Remuneration up to Rs. 9,999 per month |
No approval [Sec 314(1)] |
|
Remuneration Rs.10,000-Rs. 19,999 per month |
Approval by special resolution [Sec 314(1) read with Rule 10C(1) of CGGRF] |
|
Remuneration Rs.20,000-Rs. 49,999 per month |
Prior approval by special resolution [Sec 314(1B) read with Rule 10C(2) of CGGRF] |
|
Remuneration => Rs.50,000 per month |
Prior approval by special resolution + Central Govt approval [Sec 314(1B) read with Rule 10C(2) of CGGRF and Rule 3 of Director's Relatives (Office or Place of Profit) Rules 2003 ] |
Regards
R.V.Seckar
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YES......SUBJECT TO THE CONDITIONS LAID DOWN U/S. 314
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