can anyone please summaries the said section... explain itin a simplified language...
Akarsh Goyal (Student-CA Final) (1357 Points)
25 April 2013can anyone please summaries the said section... explain itin a simplified language...
Raja Rajeswari
(Asst. Manager - Quality control manager)
(124 Points)
Replied 25 April 2013
Hi Akarsh Goyal
Section 314 of the Companies Act, 1956 says about Holding office or place of profit.
Purpose: To restrict any person holding office or place of profit. to AVOID MISUING OF FUNDS AND AVOIDS IMPROPER SIPHONING OF FUNDS.
Applicability: Both Private and Public companies, where directors remuneration is excess of Rs.50,000, other persons any amount received as remuneration and for body corporate any amount received as remuneration.
Section Applies to: Individuals, Firms and Body corporate.
Individuals : 1. Directors, 2. Relative of director, 3. Partner of director /relative of director, Director / member of a private company.
Firms : 1. Directors, Partner and 2. Relatives of partner
Body Corporate: 1. Director or Relative of Director of a private company, is director or partner in other company or firm.
The provision has two sets of conditions:
Ist set of conditions u/s 314(1):
2nd Set of applicability u/s 314(!A)
Analysis of 20 GST Notices (including 2 Appeals) and Practise on Drafting(with recording)
GSTR 9 and 9C for FY 23-24 as amended by Notification 12/2024 dated 10th July 2024(with recording)
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