27 August 2011
Whether Sec. 314(1) of Co. Act is applicable in case a person is appointed as a manager ? It clearly says that it's not applicable but most of the answers r not considering this exemption. Even ICAI's suggested of CA Final Nov 2010 Exam says that appointment of manager is regarded as a appontment to place of profit in Co.
Sec 314(1) specifically Exempts follwing persons from it's scope-
1. MD 2. Manager 3. Trustees of debenture 4. Banker of CO.
28 August 2011
A director can be appointed as MD, Manager, trustee or baker with out attracting section 314(1). But if a relative of a director is appointed as manager etc., section 314(1-B) attracts.
But In Book of Munish Bhandari it is written in every answer that Sec 314(1) is applicable when the relative of director is appointed as a manager on a Remuneration of Rs. 30000 monthly
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