Special resolution for hiring directors relative as employee

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Divya Garg

Director

178 Points Posted on 04 January 2014

As per company act, we understand that if we hire a relative of Director on Salary as full time employee and if salary of the same is within 20000 INR per month, we need to pass a special resolution.

Can you please let us know if this special resolution need to be uploaded anywhere on MCA website in any form ? Or this special resolution just need to kept in company registers ?

Thanks,

Divya

Replies (2)

Ankur Garg

Company Secretary and Compliance Officer

114788 Points Posted on 05 January 2014

Dear Divya,

Kindly appreciate, every resolution which is passed as special resolution is required to be registered with ROC through filing of form 23 within 30 days of passing such SR. This is the requirement of section 192(4) of the Companies Act, 1956.

So you have to file copy of this SR in form 23 within 30 days of passing.

Thanks

Divya Garg

Director

178 Points Posted on 06 January 2014

Thanks Ankur.

Can I assume that for Salary of 16,000 Rs per month for a relative of director, SP is required ?

Also, Is there any definition of relative as such ? I mean blood relations, distant relative ?

Daughter of my real sister will be considered as relative ?

My sister will be considered as relative ?

If my would be husband is already working as employee of same company today with salary of 16000 per month and say we are getting marrried in March 2013 ... Do we need to pass a special resolution for that since we will be relative after marriage ?

Originally posted by : Ankur Garg
	Dear Divya, Kindly appreciate, every resolution which is passed as special resolution is required to be registered with ROC through filing of form 23 within 30 days of passing such SR. This is the requirement of section 192(4) of the Companies Act, 1956. So you have to file copy of this SR in form 23 within 30 days of passing. Thanks