Section 314 of company's act

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Hello frnds,

Can anyone of u explain me section 314 of co. act ina  simple way????  It is regarding Director holding office of place or profit.It is a bit confusing.

Replies (1)

Dear Anjali ji,

 

Not detailing and not covering the relatives of director just to give an overview:

 

If any director, holding the office of Director, obtaines from the Company, anything by way of salary, remuneration, fee, commission, perquisites or otherwise, over and above to which he is entitled as a director of a company, section 314 will be attracted and it shall be treated as office or place of profit.

 

 

Limits:

Below Rs. 50000/- p.m. Approval of Shareholders by way of Special Resolution

 

upto 50,000/- p.m. Prior approval of shareholders by way of Special Resolution

 

More than 50,000/- approval of central government

 

(However, in case of relative of directors, the limit of Rs. 50000/- has been extended to Rs. 2,50,000/-)

 


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