Exemption under Section 299(6) of Companies Act, 1956

This query is : Resolved

CS Riyanka Jain (Querist)
Follow

02 November 2009 If a Director is common in two companies and holds less than 2% of the paid up share capital of either of the companies, then whether exemption under section 299(6) will be available or not?

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
Follow

02 November 2009 Remaining portion of the condition is also to be looked into viz., any director or two or more of them together ...., so as to answer the query.

CS Riyanka Jain

CS Riyanka Jain (Querist)
Follow

02 November 2009 The query is about one director who is common in 2 companies holding less than 2% of the paid up share capital in one of the companies, then what will be the consequence??whether exemption will be available to him or not??

Kinjal Shah

Kinjal Shah (Expert)
Follow

03 November 2009 The Directors can claim expemption of Section 299(6) of the Companies Act, 1956 only in the case of arrangement not in the nature of Purchase, Sales and Service (the business items wherein Section 297 applies). But as true governance of the law i would suggest to obtain the disclsoure and enter the transaction maintained under Section 301 of the Companies Act, 1956

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now