Payment of Tution Fees of Son of Director

I would like to know that:

Can A Ltd. (Public Unlisted Co.) make direct payment of tuition fees and living and maintenance exp. of Son of MD?

Such a facility is not included in the remuneration package of MD.

In return of such payment, Son of MD will execute a bond with Co. to serve the co. for a period of three years after completion of his studies at a nominal remuneration to be decided by co. in future.

Plz tell me the compliances invloved , whether Section 314 wil be applicable?

The Auditors are insisting that only a Board Resolution is sufficient. Are they right?

 

Replies (2)
I don't think that given the circumstances, it will come under the place of profit rule and hence an ordinary resolution would suffice.

Thanks. It means that since Son of MD is executing the bond with co. to serve it thereafter, the co. will not have have to comply with Office or Place of Profit Rules.

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