Appointment of Sales Manager

[RAVI SONI]

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.

[DR.MARIAPPAN GOVINDARAJAN]

It is better to approach the practising company secretary in your jurisdiction for this purpose.

AI Summary

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.