Nischitha B 17 September 2021

Compensation for director on his death

Hi All,

My husband who was director of one of the private limited company expired on May 29 2021.
Can we expect any compensation from the company or it depends on other directors and state of the company.

Thank you

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15 Replies

G.L.N. Prasad (Retired employee.) 18 September 2021

Contact the Company Secretary (or any other company executive) and request him to provide you a copy of such benefits as adopted in General Body meeting or as per Articles and Memorandum of association, if any.

Pradipta Nath (Advocate) 18 September 2021

What was the status of your husband other than Director? I mean was he an employee of that Company too?

Nischitha B 18 September 2021

Yes he was director, employee and share holder of the company.

P. Venu (Advocate) 18 September 2021

What is the context for this query? Is the company denying the benefits that are due?

Nischitha B 18 September 2021

I want to know how much I can expect as per the Pvt Ltd company law and norms. Also yes they are denying the benefits to give stating that company is on loss.

Dr. J C Vashista (Advocate ) 19 September 2021

It differs from a company to another which is provided in the Memorandum of Association and Articles of Association of individual company. However, no such law is there applicable in instant case but mutually agreed terms of the partners/ shareholders prevail the subject.

Pradipta Nath (Advocate) 19 September 2021

How your husband died? Please tell.

Nischitha B 19 September 2021

He died from covid.

Pradipta Nath (Advocate) 19 September 2021

Though there is ample scope for interpretation when it comes to sub-clause (d) under Entry-1 of Part-A under Schedule-III of the Employee Compensation Act, 1923, but I will prefer to get into more details in your case. I left it in you, you can get the work done by any lawyer of your choice.

Nischitha B 19 September 2021

Will that depends on status of the company. Bcoz according to MD he tells company is under loss , hence he cannot give any compensation.

P. Venu (Advocate) 19 September 2021

You are entitled to receive gratuity, PF, leave encashment in accordance with the extant norms. As regards to compensation, there is no scope unless the organization has any special schemes for such contingency.

Pradipta Nath (Advocate) 19 September 2021

No statutory compensation doesn't depends upon the loss or profit. It is mandatory and when company denies it, the law will take its own course of action. Aside, I need to find out more details in your matter to form opinion. Thanks and regards.