Appointment of director relatives requires central government approval and selection committee clearance for high-remuneration posts and disclosures. Appointments to an office or place of profit involving partners or relatives of directors/managers, firms or private companies in which they are interested, or relatives engaged as consultants, require Central Government approval when remuneration exceeds the prescribed threshold. Such appointments must follow the same selection procedure as non-relatives and, for listed companies, be approved by a Selection Committee dominated by independent directors and an outside expert; unlisted firms must include outside experts while private companies may be exempt. Applications must include undertakings on exclusive employment, detailed remuneration and services, shareholding and dividend data, comparators for pay, and aggregated disclosure of relatives' remuneration for section 198 computation.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Appointment of director relatives requires central government approval and selection committee clearance for high-remuneration posts and disclosures.
Appointments to an office or place of profit involving partners or relatives of directors/managers, firms or private companies in which they are interested, or relatives engaged as consultants, require Central Government approval when remuneration exceeds the prescribed threshold. Such appointments must follow the same selection procedure as non-relatives and, for listed companies, be approved by a Selection Committee dominated by independent directors and an outside expert; unlisted firms must include outside experts while private companies may be exempt. Applications must include undertakings on exclusive employment, detailed remuneration and services, shareholding and dividend data, comparators for pay, and aggregated disclosure of relatives' remuneration for section 198 computation.
Full Summary is available for active users!
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
of 
Join Channel
TaxTMI 
