Can A Director Receive whatever amount without Central Government Approval?
If a director holds office or place of profit S/R Passed by shareholders
The issue of C/G approval is under 314(1B)
So Can A Director Receive whatever amount without C/G Approval ?
As per sec 314 director can receive remuneration for the office of profit hold by him by passing s/r in the general meeting and he can receive remuneration up to any amount withoutapproval of central government.however as per sec 314(1) tells that if any director relative receive remuneration more than 250000 then he have to take prior approval of c/g and the director not come under sec 314(1) .therefore there is no any approval is reqrd to give any remuneration to a director. but if he is relative of such director and you give remuneration to 50000 then no approval is reqrd and if you give more than 50000 but up to 250000 then shareholder approval is reqrd and it excceds to 250000 then prior approval of c/g is reqrd. so as per your case no approval of c/g is reqrd irrespective of fact whether the person who hold the place of profit is relative of directors.
Is the post related to companies act 1956?
Companies act 1956 is no more relevant as new act introduced in 2013 is now effective for companies.
The answer to the FAQ should be as per new companies act 2013.
Only sections upto 99 are notified in the official gazate, unless all sections are notified, the old act still persists.
CA. Sundeep Kamath