The Remuneration to Director for his professional service may be excluded as per Section 309.
However, i think it will hit Section 314. am i right? Please clarify.
K Mohamed Ibrahim (Company Secretary) (104 Points)
10 November 2010The Remuneration to Director for his professional service may be excluded as per Section 309.
However, i think it will hit Section 314. am i right? Please clarify.
Ajay Mishra
(Company Secretary)
(74337 Points)
Replied 10 November 2010
Hi
Any remuneration received by the director for discharging duties as a director would not make the ofice held by director an "ofice of profit". An "ofice of profit" arises only when a director gets remuneration over and above to which je is entitle to get, as a director.
The professional fee to director will cover under section 314 of the Companies At,1956.
Regards
CS Ankur Srivastava
(Company Secretary & Compliance Officer)
(17853 Points)
Replied 11 November 2010
Any office or place is deemed to be office or place of profit if the director obtains anything from the Company by way of remuneration over and above the remuneration to which he is entitled as such director, whether by way of salary, fee, commission, perquisites, the right to occupy freee of rent any premises as a place of residence or otherwise.
CS Ankur Srivastava
(Company Secretary & Compliance Officer)
(17853 Points)
Replied 11 November 2010
Therefore, ofcourse you are absolutely right.
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