What is office or place of profit?
An office of profit means a position that brings to the person holding it some financial gain, or advantage, or benefit. It may be an office or place of profit if it carries some remuneration, financial advantage, benefit etc.
Can a director hold an office of profit?
Thus, a director shall be held to be holding an office or place of profit where the director receives from the company anything by way of remuneration over and above the remuneration to which he is entitled to as a director.
On which company section 188 is not applicable?
> Provided also that this section 188(1) shall not apply: to any transactions entered into by the company. in its ordinary course of business. other than transactions which are not on an arm’s length basis.
What is the place of profit in business?
Profit is “money in the bank.” It goes directly to the owners of a company or shareholders, or it is reinvested in the company. Profit, for any company, is the primary goal, and with a company that does not initially have investors or financing, profit may be the corporation’s only capital.
What is the meaning of place of profit?
In ordinary parlance, an office or place of profit means an office or profit or position, which brings to the person holding it some pecuniary gain or advantage or benefit. It will be an office or place of profit if it carries some remuneration, pecuniary advantage, benefit etc. The amount of such profit is immaterial.
What are Secretary powers?
control the officers and employees working under the Panchayat, subject to the general superintendence and the control of the President; discharge all the duties and exercise all the powers specifically imposed or conferred on the Secretary by or under this Act.
Can proxy demand a poll?
Companies Act, 2013. (b) in the case of any other company, by any member or members present in person or by proxy, where allowed, and having not less than one-tenth of the total voting power. (2) The demand for a poll may be withdrawn at any time by the persons who made the demand.
Does section 185 apply to private companies?
Section 185(2) allows a company to give loans to any person/entity in whom any of the directors are interested in subject to certain conditions. Any private company of which any director of the lending company is a director or member.
What is office or place of profit under Companies Act 2013?
Thus the meaning of (a)(ii) of section 188 of 2013 is that, it refers to office or place of profit held by the individual, firm, private company or body corporate holding it obtains from the company anything by way of remuneration, salary, fee, commission, perquisites, any rent-free accommodation as a place of …
Can a person hold an office or place of profit?
Unless an office or place held by a person under the company carries remuneration, this section cannot apply. Merely because a person holds any position in or under the company, he cannot be said to be holding an office or place of profit; it must carry remuneration in some form.
What does it mean to be an office of profit?
Unsourced material may be challenged and removed. An office of profit means a position that brings to the person holding it some financial gain, or advantage, or benefit. It may be an office or place of profit if it carries some remuneration, financial advantage, benefit etc.
What does it mean to have a place of profit?
The expression “place of profit” means “any office or place in a company in which a director obtains anything by way of remuneration other than the remuneration to which he is entitled as a director”.
Can a director of a company hold a place of profit?
Let us refer to Section 314 (1) and analyze it. The first limb says that Director of the company shall not hold any office or place of profit in the company except with the consent of the shareholder in a general meeting.