Applicabily of section 299 of Companies Act, 1956

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CS Riyanka Jain (Querist)
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02 November 2009 If a director of Public Co. is a member of Co-operative society also, whether section 299 will be applicable on him or not??

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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02 November 2009 Yes applicable.

CS Riyanka Jain

CS Riyanka Jain (Querist)
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02 November 2009 Thanx for ur reply sir, but its nowhere specified in section 299, then how to resolve it??

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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02 November 2009 Pl have a re look at section 299(1). The words used are, in any way,whether directly or indirectly, concerned or interested. That means the widest possible application of the section is intended.

Ankur Garg

Ankur Garg (Expert)
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04 November 2009 Agree with Sir.

Section 299 is applicable and disclosure of interest is required only when company is entering into any transaction with such co-operative society.

Regards