SECTION 314/314b- most urgent

This query is : Resolved

rajkumar (Querist)
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01 December 2009 ABC LTD IS A PUBLIC LTD CO.WHERE Mr.D IS EMPLOYED AS A WHOLE TIME DIRECTOR. His SON who is a CA is to be employed as a GM Accounts at a slary of 35000/-pm

would be highly grateful if you could tell about the applicability of section and also send a draft resolution

with regards!
rajkumar

CS Vandana Kacholia

CS Vandana Kacholia (Expert)
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01 December 2009 section 314(1b) and (2d)is applicable when any relative of director is drawing remuneration of more than Rs. 50,000 per month.

other views are invited.

Regards

Ankur Garg

Ankur Garg (Expert)
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01 December 2009 Hi,

Prima facie I am presuming that in your case Mr. D as WTD is not on office or place of profit because he is not drawing anything over and above the remuneration to which he is entitled as such.

So in your case none of the director is holding office or place of profit read with section 314(3).

As the first director himself is out of the definition of office or place of profit hence, no question arises about the applicability of office or place of profit on second director (relative).

If in your case Mr. D is drawing anything over and above his salary as WTD then section-314 is applicable in your case.

Regards

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Ankur Garg

Ankur Garg (Expert)
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01 December 2009 Also visit a useful discussion on section 314 available on the link below:

https://www.caclubindia.com/forum/message_display.asp?group_id=55509