Interested directors
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
20 January 2012
A Govt. Company has provided some movable Items worth Rs.3,00,000/- to each of its Directors.
Directors wants to pass a resolution in Board Meeting that the itmes be allowed to retained well below the Book Value i.e. at abnormally high Depreciation where as rate of depreciation on itmes is only 15 per cent under IT Act.
Can they pass such resolution when all stands to gain by the resolution and hence quorum shall not be there.
Kindly advise
Directors wants to pass a resolution in Board Meeting that the itmes be allowed to retained well below the Book Value i.e. at abnormally high Depreciation where as rate of depreciation on itmes is only 15 per cent under IT Act.
Can they pass such resolution when all stands to gain by the resolution and hence quorum shall not be there.
Kindly advise
CS Mitesh Mehta
(Expert)
20 January 2012
Section 300 contains prohibitions against an interested director. It prevent such interested director from participating in the discussion and voting on contracts and arrangement in which they are interested.
It may be noted that provisions of section 300 do not apply to private company, unless therefore the articles of association contains a prohibitory clause in terms of section 300
It may be noted that provisions of section 300 do not apply to private company, unless therefore the articles of association contains a prohibitory clause in terms of section 300
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