Rule 320 allows a company director to be admitted to a gratuity fund's benefits only if he is a whole-time bona fide employee and does not beneficially own shares carrying more than 5% of the total voting power.
320
Rules 2026 · Rule 320
Admission of directors to a fund (approved gratuity fund)
Rules 311-333
The rule. Where the employer is a company (section 2(20) of the Companies Act, 2013), a director may be admitted to the benefits of the fund only if he is a whole-time bona fide employee of the company and does not beneficially own shares in it carrying more than 5% of the total voting power.