Place of profit

Co Act 2013 141 views 1 replies

Dear Friends

I have few queries on appointment of a Director's Relative to a place of profit in the Subsidiary Company. That Relative is a related party for both immediate Holding Company and Subsidairy Company

1. The  employment contract will be  directly between the subsidiary Company and the Relative. Is the approval required by the Board of both Holding and Subsidiary Company u/s 188 of the Companies Act 2013?

2. The relative is also a related party of the ultimate Holding Company. Do the Board of ultimate Holding Company has to be give approval us 188?

Please share your views. 

Thanks & Regards

Ekta

Replies (1)

Dear Ekta,

As per my understanding approval from the subsidiary is sufficient. Because there is no direct involvement between the holding company.


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