Conditions for appointment of managing/whole-time Director - Expenses incurred on travelling and transportation of personal effects of managing or whole-time director or manager - Companies Law - Circular : No. 9 of 1993,

Circular : No. 9 of 1993, dated 28-7-1993. Subject:- Conditions for appointment of managing/whole-time Director - Expenses incurred on travelling and transportation of personal effects of managing or whole-time director or manager I am directed to say that some companies have sought a clarification on whether it would be in order for them to meet the expenses on travel of the managing or whole-time director or manager and his family members and on transportation of his personal effects from the place of his duty to his home town or to a place where he intends to settle, on expiry of his tenure. In this connection, it is clarified that these expenses are not in the nature of perquisites and are not, therefore, covered in Schedule XIII (though Schedule XIII does contain a provision in regard to reimbursement of expenses incurred on joining duty and return to the home country in respect of expatriate managerial personnel). The companies may, therefore, incur expenses on travel of the managing or whole-time director or manager and his family members and on transportation of his personal effects from his place of duty to his home town or to a place where he intends to settle, on expiry of his tenure, provided the relevant travelling rules of the company provide for incurring of such expenditure. No approval of the Central Government would be required in such cases. It is requested that this may kindly be brought to the notice of your constituents.