29 October 2012
thanks for prompt reply... but as per my understanding professional services provided by director will not cover under section 314. and further section 309(1)(a) also provide that any amount paid to director for providing professional services shall not be considered as remuneration to director.
Any amount received by a director other than director remuneration is covered under section 314.
For Example;
If Mr. X receive a remuneration of Rs. 200000 p.m. and prviding service free of cost he is not covered under section 314 but if he receive Rs. 1 in addition to Rs. 200000 for providing professional service then for such Rs. 1 he will be covered under section 314 of the companies Act, 1956.
CAclubindia
