Prohibition against director holding ‑ While applying for the approval of appointment, applicant‑ companies are to spell out in special resolutions nature and quantum of perquisites to be allowed to a relative director

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..... Prohibition against director holding ‑ While applying for the approval of appointment, applicant ‑ companies are to spell out in special resolutions nature and quantum of perquisites to be allowed to a relative director Under the provisions of section 314(1B), the Central Government s approval is, inter alia, required to be obtained in cases where relatives of directors, etc. .....

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..... allowed. It is needless to add that the nature and quantum of perquisites to be allowed in the case of a relative director should be of the same kind and at the same rate as allowed to other employees of equivalent grade of the company. Scrutiny of proposals sent under section 314(1B) of the Act, would be facilitated if evidence such as copies of rules framed by the company or auditor s certificat .....

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