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Sec 297-specified contracts with specified persons

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Biju P (Querist)
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21 December 2011 It has been provided in Sec 295 that specified contracts with specified persons mentioned in this section would need the special permission of Board of Directors.This section is applicable both to private and public companies.transcations with a private co in which director of the company is director will come under the purview of this section as the director is a specified person. My question is if X Pvt Ltd is going to enter a contarct with a Public Limited Co where one of its director hold the postion as director. Whether this section will applicable in thsi case?

Jiten Gupta

Jiten Gupta (Expert)
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23 December 2011 As this section is applicable on public company only. if loan is provided by public company to a pvt company in which directors are same then public company would be covered U/S 295.

if both are public company and having same directors then it wouldn't be covered U/S 295.

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