TaxTMI 
TaxTMI 
I want to add a new employee who will be appointed as a Sales Manager in a Private Limited Company who is also a relative to the directors and share holders, in such a scenario what is the maximum salary can give given to the employee.
Appointment of Sales Manager
30 Dec 2014 
1 Reply 
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Related-party employment: remuneration for a director relative must align with company law and professional advice on salary limits.
Appointment of a sales manager who is a relative of directors/shareholders raises remuneration and compliance issues under company law; salary must conform to statutory limits, board or shareholder authorisations, disclosure and conflict of interest safeguards. Professional advice from a practising company secretary is recommended before finalising salary and appointment terms to ensure compliance with governance and statutory requirements. (AI Summary)
Appointment of a sales manager who is a relative of directors/shareholders raises remuneration and compliance issues under company law; salary must conform to statutory limits, board or shareholder authorisations, disclosure and conflict of interest safeguards. Professional advice from a practising company secretary is recommended before finalising salary and appointment terms to ensure compliance with governance and statutory requirements. (AI Summary)
