Urgent please

If you want to appoint him as  employees, you can do so and you can give him salary for full month. However, section 314 will apply.

 

Best way is to appoint them directors (whole time) of the company.

 

 

ok but after appointing him as director should we also allot them shares?

Rightly pointed out by Mr. Ankur. However Section 314 (1) (b) will apply only when Mr. X, director (i.e. their father) will hold office of place of profit in the company. If Mr. X is just a director i.e. he is not holding office or place of profit section 314 (1) (b) will not apply. Also pls note that section 314 (1B) will apply if payment is more than Rs. 2.50 lacs per month to his sons as employee.

In a private company it is not necessary to allot qualification shares to directors under section 270 of the Companies Act, 1956.

Thanks for info Neha

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