Section 314

Under Rule 10C(2) of the Companies (Central Governemnt's) General Rules and Forms, 1956 the limits specified is Rs. 20000/- for taking prior approval from shareholders and CG approval.

Whereas under Director's Relatives (Office or Place of profit) Rules, 2003 specifies a limit of Rs. 50000/- for taking CG approval.

Which limit should be considered?

If company want to pay remuneration of Rs. 20000/- do we need to take prior approval of Shareholders or subsequent approval as specified in sec. 314(1) be taken?

Thanks in advance

regards

Amit

Replies (2)

Dear Amit

If Company wanna pay above 10,000 than approval from Members is compulsory in General Meeting

 

 

If Company wanna pay above 50,000 than approval from Members is compulsory in General Meeting and CG Approval is necessary.

 

Regards

Agree. Also please note that in your case, the approval has to be prior approval of the members and not subsequent.

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