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.
ANJALI NEGI (Chartered Accountant) (1263 Points)
18 October 2012Hello 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.
CS Ankur Srivastava
(Company Secretary & Compliance Officer)
(17848 Points)
Replied 18 October 2012
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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