Appointment under section 314 or 269

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

15 December 2009 In our Private Ltd company we have to give remuneration More than limit mentioned under section 314 to one foreigner ( who is Director of our Company) so for us please let me know what would be the better option:

1. To appoint him as employee ( Who is a director of our Company)
( So for that we have to apply section 314- Place of Profit and we have to take central government’s approval for that)

Or

2. To appoint him as MD
( so no need to follow section 314. Have to follow section 269 But still we need to take approval from CG because to appoint foreigner as MD)

He is already MD in more than 2 foreign companies. I think there is no restriction for private company if a person is MD for more than 2 Companies in India – Please clarify and let me know your views on it.

I need clarification, which would be best option for us and in which option we have to follow less procedural formality. Normally how much time it takes to get such kind of approvals. Which other option is available and under which section. Which other sections will be applicable ?

Please clarrify this matter at your earliest as it is very urgent

Rasesh

Rasesh (Expert)
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15 December 2009 Appoint him under Section 314 only. Apply for central goverment's approval. Your justification has to be good enough and the salary of the other people who hold similar position in the company will be compared with the proposed salary for this foreign director.