A relative of Director is holding place of profit (by way of monthly salary of Rs.80000/-) in the Company. The Company has obtained approval of the shareholders by way of special resolution.
Now, the same relative is also working on the project of a 100% subsidiary of the Company situated in Netherlands. Subsidiary is also willing to pay him a monthly remuneration of EUR 3500. With this remuneration, it exceeds the monthly limit of INR 2.5 lacs as specified u/s 314(1B).
My query is whether the salary received by relative form subsidiary company is also covered under section 314 (1B) and the company needs to obtain CG approval in this case? According to me, this does not attract section 314 (1B).
Friends, please give your expert opinion on the aforesaid matter.
CAclubindia
