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, said the Corporate Affairs Ministry 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.