Section 297/299 ?

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CA Mallika Chaudhary (Querist)
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15 October 2010 " Mr X, a director of XYZ Pvt Ltd , is 59% stakeholder in it. There are other individual board members also. Is he legally required to declare to the Board that his sister is an employee of the Company ?"

CS Mitesh Mehta

CS Mitesh Mehta (Expert)
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18 October 2010 NO

CA Mallika Chaudhary

CA Mallika Chaudhary (Querist)
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18 October 2010 But then what about section 314 Sir ?

CS Mitesh Mehta

CS Mitesh Mehta (Expert)
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19 October 2010 My answer was with reference to Section 299. Disclosure of Directors Interest.

As far as Section 314 is concerned, it is applicable in your case. which requires prior consent of shareholders & Central Govt. (In certain cases)

In short, Section 299 require disclosure of director interest wheras section 314 deals with obtaining prior consent.

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