Sumit Jaiswal (Company Secretary) (818 Points)
24 June 2011
A public limited company has three directors say X, Y and Z. Y is son of X. Now Z has resigned from his position and in a recent board meeting held, the board appointed S (wife of X) as Additional director in place of Z. S is not receiving any salary from the company.
My query is that since S is not receiving any salary, will section 314 attract and whether a special resolution of the members will be required?
Pratik Dhodia
(asst. CS)
(51 Points)
Replied 24 June 2011
Hi, sumit if read the section carefully you will come to know that remuneration limit has been given under
Directors relatives (office or place of profit ) Rules 2003. {which has been amended now & the said limit is increased from50,000 to2,50,000} .
as in your case She is not receiving any remuneration Section deos not get atracted. A simple Board resolution is required tio be passed.
other views solicited.....!!!! Thanks....
Have a great day......
CAclubindia
