Sec. 314 deals with Director and their relatives, Firms etc. when they hold office or place of profit in the Company.
to put it in nutshell...
Sec. 314(1) prohibits a Director/ his relative,firm, pvt.co.etc to hold any office or POP under the co. or its subsidiary where the remuneration exceeds Rs. 10,000 p.m. unless the same is approved by a SR.
however post of MD/WD etc are excluded.
[please note Sec. 314(1) is applicable when the Director himself is holding some office or POP.
Sec. 314 (1B) applies whether or not the Director himself is holding any office or POP.]
Sec.314 (1B) says that any relative of Director/any firm where he is a partner etc.. can not hold any office or POP where the remuneration exceeds Rs. 20,000 p.m. unless the same is approved by a SR.
where the remuneration exceeds rs. 50,000p.m........prior approval of CG+SR would be required.