mr. X director of pvt. Ltd. Company want to appoint their two sons as employee in the co. but actually they will come only for a weak in a month can we do full salary of the month or can we appoint him also as directors?
6 Replies
CS Ankur Srivastava
(Company Secretary & Compliance Officer)
(17853 Points)
Replied 07 December 2011
If you want to appoint him as employees, you can do so and you can give him salary for full month. However, section 314 will apply.
Best way is to appoint them directors (whole time) of the company.
Pankaj Arora
(Learner)
(3134 Points)
Replied 07 December 2011
ok but after appointing him as director should we also allot them shares?
(Guest)
Rightly pointed out by Mr. Ankur.
However Section 314 (1) (b) will apply only when Mr. X, director (i.e. their father) will hold office of place of profit in the company. If Mr. X is just a director i.e. he is not holding office or place of profit section 314 (1) (b) will not apply.
Also pls note that section 314 (1B) will apply if payment is more than Rs. 2.50 lacs per month to his sons as employee.
CA Devender Chauhan
(Group Financial Accountant)
(1526 Points)
Replied 07 December 2011
Thanks for info Neha
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