Mr. A who is son of our Managing DIrector's brother was appointed as Dy CEO of the company in March 2008 .
As brother's son does not fall under the definition of Relative as per section 6 of the companies act, so section 314 of the companies act
was not complied with .
But last year in May 2010, Mr . B joined our Board of Directors. Mr. A is Mr. B son's son i.e. grandson , he comes in definition of relative.
Last year , he was drawing a salary of Rs. 80,000/- per month .
Please advise do we need to take permission from central government for giving him this salary as the case is different here . The relative was holding place of profit before the director to whom the employee is related becomes the director of the company.
CAclubindia
