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

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..... ; 1959. Subject:- 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 Cases have come to the notice of the Government where directors of companies were paid substantial amount of remuneration besides their .....

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..... h were not to be regarded as service ordinarily expected to 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 dire .....

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..... e approval of Government for payments of remuneration or to appointments with retrospective effect. In future Government will, as a rule, have to regret their inability to validate such payments or appointments unless the companies concerned have established to the satisfaction of Government that the delay in seeking the necessary approval was inescapable. - Circular - Trade Notice - Public No .....

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