Applicability of section 300.to be sort out urgently.plz hel

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CS Riyanka Jain (Querist)

05 January 2010 If a director is common in 2 Public companies and hold less than 2% of the share capital of the Company, then will his vote be counted in the Board Meeting on the matter of a contract or arrangement to be entered into with that other Company??Is he interested under section 300???

Please help me to sort out the query...need answer urgently...

Ankur Garg

Ankur Garg (Expert)

05 January 2010 Well interest of a director in any contract or arrangement depends on the contract or arrangement itself.

If your director is directly or indirectly interested in the proposed contract or arrangement, then he is disqualified u/s 300 read with section-299.

Regards

CS Riyanka Jain

CS Riyanka Jain (Querist)

05 January 2010 Sir,

Thank you so much for ur reply

but my query is itself about the interest..that if a director is director in another company also with shareholding less than 2%, then will he be interested due to his directorship & shareholding?

and one more thing to ask whether all contracts, arrangements covered under sec 299 will also be covered under sec.300??or some more contracts and arrangement be included under sec 300??

plz rply..

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