Whether appointment of sole selling agents could be regarded as an office of profit within the meaning of sub‑section (1)

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..... of profit within the meaning of sub ‑section (1) In the course of scrutiny of prospectuses issued by public limited companies and while scrutinising applications received from companies for approval to the appointment of managing or whole‑time directors by such companies it has been noticed that some of these companies have appointed as sole selling agents firms or private limited .....

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..... g agency rights to persons who are close relatives of the managing or whole‑time directors. The Department has been considering this problem for some time past and pending a suitable amendment to the Act it has been decided that where selling agency arrangements already exist, a condition would be imposed at the time of conveying sanction to the appointment/reappointment of managing or who .....

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..... han the wife and sons of managing directors or whole‑time directors or managers were getting themselves increasingly appointed as sole selling agents then it would be necessary to extend this restriction to cover other relatives as well within the meaning of the Act. - Circular - Trade Notice - Public Notice - Instructions - Office orders Tax Management India - taxmanagementindia - taxman .....

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