Applicability of sec 309 & 310 to a pvt. co.

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Hello CA club India !!!

Frnds these are my queries and pls provide me the ans asap

01. are section 309 and 310 of Co Act. regrding remuneration of dirctor also applicable to pvt. compnies

2. Can a subscirber to share capital of a pvt. co. can withdraw his share ? if yes then how?

03. Can a Pvt Co, can pay remuneration to a Director even in case of loss? if yes then to what extent?

Replies (1)

1) Sec.309 is not applicable to pvt companies [Refer Sec.309(9)].  Sec.310 is also not applicable  to private companies [Refer first sentence of Sec.310].

2) What do you mean by withdrawal of  shares?  Subscripttion of  shares is a contract which comes into effect on the date of registration of company.  If decision is changed after signing papers, the same should not be submitted to ROC for registration.  After  registration subscribers automatically become members of the company and hence subscripttion cannot be withdrawn.  In that case they will have to transfer shares.

3) There is no restriction in the Act on payment of remuneration to directors of pvt cos. whether in profit or in loss.

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