no, section 314 of co act does not apply in ur case, because in case of a director, he is not holding office or place of profit until he gets remuneration more than what he is entitled to as a managing director. and in case of pvt ltd co., there is no limit on salary of MD. hence in ur case the director will not hold any office or place of profit.
regds,
sangram
Yes, section 314 will attract. As soon as he get appointed as Director the salary shall be related to his post of director. His designation may be Director and GM whatever.
Dear Mr. Ankur
Thank you for your reply!
In the board meeting dated 09th July we had appointed him as Additional Director and we had not decided anything for the salary. As per your reply if the salary would relate to the designation of Director and not to the General Manager, then why would he be enjoying the designation of General Manager?
He could be only on the designation of director and in that case 314 will not come in picture.
Please clarify, even if 314 applies also provide me the procedure.
Thanku.
Further I would like to add in this that if an employee is appointed as director of the company, he will be executive director, then in that case would I have to file form 23 and 25C for appointing him as WTD?
CAclubindia
