Mayuri Lal (officer CS) (748 Points)
30 May 2011Dear Members,
There are few transactions where the two Directors of the Holding Company are also the Directors of the Subsidiary Co. are getting paid from the Subsidiaries and thus falling u/s section 314.
My question is that this resolution u/s 314 will be passed by the Holding Company also.??????????
Regards,
Mayuri Lal
SANTOSH SHAH
(Company Secretary)
(754 Points)
Replied 30 May 2011
| Originally posted by : Mayuri Lal | ||
 |
Dear Members, There are few transactions where the two Directors of the Holding Company are also the Directors of the Subsidiary Co. are getting paid from the Subsidiaries and thus falling u/s section 314. My question is that this resolution u/s 314 will be passed by the Holding Company also.?????????? Regards, Mayuri Lal |
 |
Hi Mayuri
In my view, it all depends on directors holding directorship in what capacity in both companies.
If ED in both companies, then section 314 will attract and the remunerration needs to be returned.
If ED in one and NED in other then 314 will not attract.
As on capturing resolution, yes resolution needs to be in both companies, if not then the validity of the
activity will be in question.
Other views solcited
regards
Santosh Shah
Mayuri Lal
(officer CS)
(748 Points)
Replied 04 June 2011
THANKS FOR REPLYING..
But in my case the Director is NED in Holding as well as Subsidiaryy
and we will be paying sitting fees from subsidiary.
so resolution u/s 314 will be passed by Subsidiary Company rite??/
and if yes then the resolution need to be passd from holding Company as well????
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