Government approval for directors' relatives' appointments required when remuneration exceeds the prescribed monthly threshold under company rules.

No appointment to an office or place of profit in a company shall take effect unless approved by the Central Government where the appointee is a partner or relative of a director or manager, a firm in which such director, manager or their relative is a partner, or a private company of which such director, manager or their relative is a director or member, and the appointment carries monthly remuneration exceeding Rs. 2,50,000 p.m.

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