If a company employs on retainership basis the brother of the managing director as consultant providing his professional services who is being paid more than 50,000/- per month will he be attarcted under sec 314 of the companies act for which approval of central govt. should be taken (This is a Private Company). Plz Guide..
27 June 2011
According to me when any relative or friends of the Director is appointed in the place of profit or holding office of the company only than Section 314 of the Companies Act is attracted and if the remuneration is exceed 50000/- month than prior approval of the Central government is required.
Rule 3 of Director's Relatives (Office or Place of Profit) Rules modified. Monthly Remuneration, in case of appointment of relatives of directors with approval of CG, raised from Rs. 50,000/- to Rs. 2,50,000/-
29 June 2011
My opinion Special Resolutions and Central Gvt Approval is required because the MCA there is given only in Notification but Not Circulating so My point is Both Special Resolution and CG Approval Must.,
So u can Consider the Notification , only when it Circulating k.,
CAclubindia
