Application of Section 297 of co's Act

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kamini (Querist)
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04 February 2010 If a MD of real estate company(closely held)purchases a flat in its company so, will that attract Sec.297 of directors.i.e specified contract with specified person.or is there any other provision applicable.reply soon

Ankur Garg

Ankur Garg (Expert)
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04 February 2010 Hi,

Section 297 is not applicable to the contracts of Immovable property. Hence there is no need to worry.

However there is full applicability of section 299 i.e. disclosure of interest by director.

Sections applicable to your case are section 299 + 300 + 301. Kindly go through these sections.

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Thanks

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