Appointment of sole selling agents could be regarded as an office of profit within the meaning of sub‑section (1) - Companies Law - No. 12(9)‑CL‑VI/68,

Circular : No. 12(9) ‑ CL ‑ VI/68, dated 19 ‑ 11 ‑ 1968. Subject:- Appointment of sole selling agents could be regarded as an office of profit within the meaning of sub ‑ section (1) Further to the Department s earlier Circular No. 12(5)‑CL‑VI/62, dated 13‑12‑1962 [printed as Clarification 2], the question whether the appointment of sole selling agents could be regarded as an office of profit within the meaning of section 314 has been examined in consultation with the Ministry of Law. The Department is advised that appointment of managing director of a company [which term would include a director or his relatives, etc., mentioned in clauses (a) and (b) of sub‑section (1) of section 314] as sole selling agents by the company could be regarded as holding an office of profit under the company within the meaning of section 314 and accordingly, in terms of requirements of section 314(1), a special resolution according the consent of the company to the appointment of a director or relative or a firm in which such a director or relative is a partner or a private company in which such a director is a director or member, as sole selling agents of the company will be required to be passed.