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
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.
CAclubindia
