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Director holding office of profit

Others 812 views 5 replies

CA. Prabudh Sharma

83 Points Joined March 2007

Pl. guide me:

A director appointed to a office or place of profit at a remuneration equal to or more than 10,000 pm needs a SR in GM (either before or in the next GM)

A director appointed to a office or place of profit at a remuneration equal to or more than 50,000 pm needs a SR in the General meeting (either before or the next GM) - SAME AS ABOVE, No approval of CG reqd.?????? - or IS THERE SOME DIFFERENCE??

But if a relative of a director is appointed to a office or place of profit at a remuneration equal to or more than 50,000 pm, it needs a prior SR in the General meeting and prior approval of CG is reqd.

Replies (5)

Ankur Garg

Company Secretary and Compliance Officer

114783 Points Joined January 2009

As per section 314(1) prior SR is not required and post approval of members through SR is enough.

As per section 314(1B) prior approval of members through SR is required. Up to 50000 no CG approval is required read with O or POP rules. But prior SR is required from 20000 to 50000.

If proposed remuneration is more than 50000 then prior SR and Prior CG approval is required.

Regards