SECTION 314(1)(b)

One of the female employee of the company got married to Managing Director's son in December,2009. She was appointed in the company in the month of October,2009 at a salary of Rs. 45000 p.m.  Now since she has become relative of Managing Director is section 314(1)(b) will be applicable or not. kindly advise.

 

Replies (3)

Hi Priyanka,

Special resolution needs to be passed in the present case as only the employees -relatives already in office before the director becomes director are covered by exemption u/s 314(1A).

The case has been answered by dept. also.U can refer "A Ramaiya's Book volume 2 page no.3071 for the same.

 

Yes, I agree with here.

yes, law requires to get approval of members in form of special resolution u/s.314  (1) (b). exception is appointment u/s408 by the Central Government.

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