Hello Friends,
My Company's paid up capital is 1 crore and its also give 60000 monthly remuneration to its Director.
Is it related party transaction ? and company need to be taken approval from shareholder?
4 Replies
rakhi agarwal
(student)
(189 Points)
Replied 02 March 2015
No since monthly remuneration does not exceed rs.250000, yes its a related party trnsc
CS Divesh Goyal
(Practicing Compnay Secretary)
(50535 Points)
Replied 02 March 2015
Payment of remuneration to director doesnt cover under sec 188. So its not a related party trnsaction
CS Ankur Srivastava
(Company Secretary & Compliance Officer)
(17853 Points)
Replied 05 March 2015
| Originally posted by : ACS Divesh Goyal | ||
 |
Payment of remuneration to director doesnt cover under sec 188. So its not a related party trnsaction |  |
Salary to director is not a office of place and not covered under section 188 as rightly pointed by our learned Member.
Avneesh Mishra
(CS Trainee)
(502 Points)
Replied 05 March 2015
The salary to director can not be considered as a RPT U/S 188 as the monthly salary paid by the company to the director is in lieu of his whole time services towards the company.
Rightly accorded by both the seniors above.
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