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297 or 309 or 314

Dipjyoti Majumdar (CA in service & CS. dipmaj@ rediffmail.com ) (3468 Points)

19 February 2012

Friends

I saw this query posted somewhere else. If a company enters into an agreement with a non-executive director for his rendering strategic services to the Company for a period of one year and payment of remuneration for such services will it come under Sec 297 or 309 or 314.

Please let us discuss

Regards,

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2 Replies

Dipjyoti Majumdar (CA in service & CS. dipmaj@ rediffmail.com ) (3468 Points)
Replied 20 February 2012

Friends

Any responses please.

Regards,

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CS Mitesh Mehta (Company Secretary) (17139 Points)
Replied 22 February 2012

In the DCA View,Section 297 does not apply to a contract for professional services, personal services or to employment contracts. If director provides services by holding a whole -time position under the company, provisions of section 198, 309 is applicable. 314 is not applicable Where a director provides the services on case-to-case basis or on regular or retainer basis, section 198,309 etc and that of Section 314 are prima faice applicable.