Roshan Mishra (CA Final Student) (232 Points)
05 March 2014Hello 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?
P C Agrawal
(Registered independent director Past Chairman of Aurangabad Chapter of ICSI Practicing Company Secretary at Aurangabad)
(8229 Points)
Replied 05 March 2014
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 After registration subscribers automatically become members of the company and hence subscripttion cannot be withdrawn.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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