We have recently filed a form 32 wherein we changed the designation of my promoter director in to non executive director. The said director do not possess and professional qualification. Further as the company has adequate profits the company as per section 309(4) is undertaking cent govt approval for paying any further remuneration to the said director and as per income tax act would deduct tax under 194J. Kindly correct if i m wrong in my interpretations.
26 March 2011
For payment of commission within the limits specified in Section 309(4), CG approval is not required. Special resolution passed in General Meeting is sufficient.
Payment of commission exceeding these limits and payment of remuneration by way of monthly, quaterly or annual payment requires CG approval.
According to my understanding of your query, you are going for CG approval as you want to pay remuneration in excess of the limits specified in Section 309(4). So, your intrepretation is correct.
CAclubindia
