If a relative of a Director of the Company is to hold an office or place of profit in its subsidiary company carrying a monthly remuneration in excess of Rs.50,000 p.m., whether the prior approval of the shareholders by way of a Special Resolution has to be obtained?
What is the meaning of the term,'Notwithstanding'?
04 January 2011
I think in addition to special resolution, CG approval will also be required as the monthly remuneration is going to be in excess of Rs.50,000 p.m.
The significance of using the words 'notwithstanding' is due to the fact that sub-section (1) already covers cases where only special resolution is required (monthly remuneration is less than Rs.50000 p.m.) while this sub-section covers SR + CG approval where monthly remuneration is greater than Rs.50000 p.m.
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