If in case we pay salary of more than Rs.50000 to any relative of director, then what are the rules and regulations we need to compliance with??
reply asap.
CA Paras jain (Audit Senior Assistant) (1544 Points)
21 February 2011If in case we pay salary of more than Rs.50000 to any relative of director, then what are the rules and regulations we need to compliance with??
reply asap.
vishnupriya
(CA Final)
(1418 Points)
Replied 21 February 2011
Dear friend!
Sec 314 (1B) of the Companies Act, if the remuneration to specified persons exceeds 50000/- per month, the following 2 conditions are to be satisfied.
1. Special resolution by the members prior to the appointment
2.Proir approval of Central Govt.
CA Anshu Agarwal
(B€ @LW@¥$ ]-[@Pp¥)
(1832 Points)
Replied 10 March 2011
| Originally posted by : Vishnupriya | ||
 |
Dear friend! Sec 314 (1B) of the Companies Act, if the remuneration to specified persons exceeds 50000/- per month, the following 2 conditions are to be satisfied. 1. Special resolution by the members prior to the appointment 2.Proir approval of Central Govt. |
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in case of contravention: appointment shall be void, and remuneration received shall be refunded and no waiving off for this.
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