place of profit in a pvt Company

Ghanshyam Singh Jhala (Practcing Company Secretary )   (30 Points)

08 July 2009  

ABC a Pvt Company having four shareholders and all are Directors .All the dIrectors are related to each other

Director A - MD is related to Director B (WTD) getting remuneration

Director C - WTD is related to Director D (WTD)

Director A (MD) and C (WTD) are not related to each other

They all are paid remuneration which is above the limites specified under section 314 and the rules thereof .

In this case will the company be required to take CG's approval or not ?

All of them are getting remuneration only and not anything over and above remuneration . WIll they be treatred as holding place of profit .?