Dear All,
A Public Listed Company is paying salary to its whole time director, will it be covered under related party ttransactions. Please suggest.
Regards
Rashi Tiwari
6 Replies
Rakesh Dhanuka
(Company Secretary)
(478 Points)
Replied 09 November 2011
yes........under key management personnel
CA Rahul Singh
(CA B.com (hons) Mcom Pursuing)
(185 Points)
Replied 09 November 2011
As per Section 314 of companies act... he hold POP... Hence he have to get approval with special resolution for getting the salary...
CS Rajveer Rai, Gurgaon
(CS)
(646 Points)
Replied 10 November 2011
Hi Rashi this is not covered under related party transaction. section 297 of the Companies Act 1956 says: A director in emloyment or a person rendering services in professional capacity is not covered in it.
Dipjyoti Majumdar
(CA in service & CS. dipmaj@ rediffmail.com )
(3468 Points)
Replied 10 November 2011
I guess the query is from AS 18 disclosure angle -- not from section 297 or 314. Disclosure is very much necessary under AS 18 in notes to accounts in AR.
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