Saturday, May 14, 2011

NEW NORMS ON HIRING RELATIVES IN COMPANIES

The government has released norms for appointment of relatives in companies, a decision that will allow directors or managers to engage services of close ones without seeking permission of the
Centre. A company, however, will be required to seek the permission of the central Government if monthly payment made to relatives is more than Rs 2,50,000, the Corporate Affairs Ministry said in a notification. Earlier, approval of the Corporate Affairs Ministry was required for appointment of relatives of directors or managers, in case the monthly remuneration to be paid to the person exceeded Rs 50,000. Further, with regard to selection of such relatives of directors or managers of a listed company, the Ministry has maintained that it would be done by the Selection Committee

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