Hello Friends,
My Company's paid up capital is 1 crore and its also give 60000 monthly remuneration to its Director.
Is it related party transaction ? and company need to be taken approval from shareholder?
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Section 188-related party transcation
Replies (4)
No since monthly remuneration does not exceed rs.250000, yes its a related party trnsc
Payment of remuneration to director doesnt cover under sec 188. So its not a related party trnsaction
| Originally posted by : ACS Divesh Goyal | ||
 |
Payment of remuneration to director doesnt cover under sec 188. So its not a related party trnsaction |  |
Salary to director is not a office of place and not covered under section 188 as rightly pointed by our learned Member.
The salary to director can not be considered as a RPT U/S 188 as the monthly salary paid by the company to the director is in lieu of his whole time services towards the company.
Rightly accorded by both the seniors above.
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