place of profit in a pvt Company

Pvt ltd 637 views 2 replies

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 .?

 

Replies (2)
Originally posted by :Ghanshyam Singh Jhala
" 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  under section 314 of Cos ACt,1956.?
 
"


 

Hi,

 

Section 314 is applicable to a private company.

 

As per the information provided by you nobody is drawing anything over and above remuneration.

 

In this situation there is no applicability of section 314 till date even if all are paid remuneration which is above the limits specified under section 314 and the rules thereof.

 

Further provisions related to Managerial Remuneration are not applicable to a private company.

 

Regards

 


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register