Shabnam Siddiqui (Company Secretary) (152 Points)
21 September 2010Can a holding company pay remuneration to the director of a Subsidiary company? Both Holding and Subsidiary companies are pvt. ltd. cos.
Jagruti (CS)
(Service)
(1953 Points)
Replied 22 September 2010
Yes, Company can pay but check it do not fall under Sec 314 of office or place of profit. Otherwise you need to comply with its provisions as per remuneration paid to director.
Deepak Maharishi
(CS)
(514 Points)
Replied 22 September 2010
Agree with Jagruti.
In you particular case, apparently, 314 is not applicable, so the remuneration may be paid.
regds
CAclubindia
