17 December 2011
Respected experts, If a pvt ltd company pays Rs 5,00,000 to its director then whether it would come under sec 314 of the companies act
If the Company pays 5 Lac as remuneration then Provisions of Section 314 of the Act are not applicable
Further if Director holds any office or Place of Profit then the Provisions of section 314 of the Act are applicable as Suppose he is Sole selling Agent of the company then we have to go for central Govt Approval
Guest
Guest
(Expert)
17 December 2011
If director receives any thing over and above to which he is entitled as director then 314 is applicable.
In your case it is not applicable.
It is better to appoint such director as MD or WTD since these designations are covered in exceptions.
Can u pls clarify, if the director of the company is getting a professional fees Of Rs 5,00,000/- P.M. whether it is neccesary as per sec 314 to pass special resolution in this respect.
Thanks for previous reply
Guest
Guest
(Expert)
19 December 2011
Hi dhaval,
if director is getting professional fees then section 314 will be applicable and you need to pass special resolution.
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