Section 314

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

10 February 2011 Hi

Plz clear me regarding diff. b/w sec.314(1) and sec 314(1B) except remun. limits(10000 and 50000)
if co. wants to appoint son of a diretor as WTD of co. at 35000 per month then which section attracts 314(1)or 314(1B)???

Thanks

Jayashree S Iyer

Jayashree S Iyer (Expert)
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11 February 2011 The main difference between 314(1) and 314(1B) is that Section 314(1) covers, in addition to other cases falling under both the sub-sections, the cases of holding of any office or place of profit by the directors of the company. .

Both the Sections are similar in all other respects with the exception of remuneration limits as specified by you.

Your case would fall under Section 314(1)as the remuneration is Rs. 35,000/- per month. Remuneration exceeding Rs. 50,000/- per month would fall under Section 314(1B).

udit sharma

udit sharma (Expert)
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11 February 2011 I would slightly differ from the expert here...the case would fall under section 314(1B) of the Companies Act, 1956 since the monthly remuneration is in excess of Rs.20,000/- p.m. so prior approval of the shareholders by way of a Special Resolution is to be obtained in this case.

Experts your views please...

God Bless

CS Udit Sharma

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Querist : Anonymous

Querist : Anonymous (Querist)

16 February 2011 thnx experts

plz tell me one more thing if relative of director is appointed in WOS then which sec attracts sec.314(1) or sec.314(1B)

regards.....