Disclosure of interest by director

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Gaurav (Querist)
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25 September 2009 If pvt. ltd. co. gives advance to HUF for purchase of property of HUF and director shareholder holding more than 20% share in co. is karta of HUF, then is this covered u/s 297 or 299 of Co. Act. What resoltuion is required for the same.

Ankur Garg

Ankur Garg (Expert)
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25 September 2009 Hello,

Section 297 is not applicable as section 297 is not talking about HUF.

However section 299 and 300 are 100% applicable. Director need to disclose his interest in the board meeting considering the proposal.
Also he can't count in quorum and can't vote u/s 300.

Regards

Gaurav

Gaurav (Querist)
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25 September 2009 But sec. 300 is not applicable to a pvt. co.

Ankur Garg

Ankur Garg (Expert)
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25 September 2009 Agree with you.

If you are a purely private company then your director is free from the restriction of section 300.

Regards

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