A situation has arisen involving a public limited company's intention to purchase a policy for its directors. The agreement entails that the director will dedicate a minimum of 10 years to the company's service, during which the company will cover the policy premium. This expense will be reflected in the company's profit and loss statement as a legitimate deduction under the Income Tax Act.
Throughout the initial 10-year span, the company retains ownership of the policy. After this period, ownership transfers to the employee-director. Consequently, all policy benefits accrue to the employee.
In this context, my query pertains to the calculation of the director's remuneration. Specifically, should the payment of the policy premium be included as part of the director's overall compensation package?
If the company being wound up ,due to non filing of financial statement for consecutively 5 years. Does company is liable to pay compensation for loss of office to their directors?
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An employee has suffered an accident while at work. As per the Employees Compensation Act, 50% of the monthly salary is to be paid to employee by the employer in case where temporary disability has occurred. The company (employer) has taken personal accident policy of the employee and the employee will get compensation under such Policy.
If the insurance company pays the compensation to the employee concerned, does it mean that liability of the company to pay compensation is complied with? Does the company need to pay anything above the compensation paid by the insurance company to the employee? Please share your views.