Increase in director’s remuneration requires Government sanction Director rendering services ordinarily expected to be rendered by him Whether remuneration paid for services required approval of Central Government

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... remuneration requires Government sanction ‑ Director rendering services ordinarily expected to be rendered by him ‑ Whether remuneration paid for services required approval of Central Government Cases have come to the notice of the Government where directors of companies were paid substantial amount of remuneration besides their reasonable expenses, for services rendered to the compa....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....o be rendered by a director, though he had not been appointed to a place of profit in terms of section 314. In this connection the Central Government would like to make it clear for the information and guidance of companies that strict compliance with the provisions of section 314 would be required in appropriate cases. Where a director is entrusted with work which involves the rendering of serv....