section 314- extremely confused. need help

Hello!

As per sec 314 plz. chk the amount u r paying and as per that comply with the provision. And as far as passing of resoltuion in co. pl. chk the date of appointment in both the co. whichever is later pass the resolution in that co.

Upto 10000- No approval is required

Upto 50000 or 50000- SR is required

More than that CG approval is required....

Further comments are welcomed

Regards

Nidhi

Hi Mayuri,

Agreed with Nidhi... Just to add few inputs...

•  WTD can not draw salary in two compnaies, he can be appointed as MD---refer Ramiya
  
•  Need to check over all remuneration drawn by Mr. A, It should exceed limit as specified in section 269. Otherwise CG approcal required.
  
•  Resolution will be required as suggested by Nidhi...
  

Regards

Jaideep Pandya

First of all, agree with Jaideep no person can be appointed as WTD in two companies.

If you appoint both of him as a director then 314 would not apply.

Section 314 is not applicable in your case. Since both of  them are directors of the Company and drawing salary only in the capacity of Directors.

Any office is called office or place of profit:-

In case of Director:- if the director holding obtains from the company anything by way of remuneration over and above the remuneration to which he is entitled as such director, whether as salary, fees, commision, perquisites or otherwise.

In case of other than Director:- If the office or place is held by an individual other than a director or by any firm, private company or body corporate if the individual, firm, private company or other body corporate holding it obtains from the company anything by way of remuneratino whether salary, fees, commission, perquisites or otherwise

Further go to following link

/forum/section-314-of-the-companies-act-1956-115893.asp

Seriously, How can i miss that point............Its the basic of sec 314......Thanks Mr. Ankur for confirming........i was just looking the situation as per the prospective of sec 314..........NXT time will keep my eyes and mind wide open.....Thanks once again......

Nidhi

My pleasure Nidhi...

/forum/details.asp?mod_id=115880&offset=1

Dear members,

But teh limit of Rs. 10000 is not apllicable to teh Director it is aplicable only to the relative of Director..

So that means if we paying even 1 rupee or more to teh Director of what he is entitled to get he ill cm under sec 314 rite..

 But teh siotting fees has been paid from holding cmpany and the  subsidiary company as well...

and the section specifivcally says that any amount paid from teh subsidiary and it is not approved by teh shareholders in teh immediete general meetin then the director shall VACATE  his office and REFUND  the amount..

Correct me if i  rong...

Regards,

mayuri lal

An teh director in my situation is not teh WTD JSU IN CASE IF Aanybody wants to change their view or add on anything

Thanks a lottt everybody for replying..