11 February 2010
Hi There Need a clarification in this case :
1. A Ltd and B Private Ltd have two common directors with more than 2% shareholding in both companies. B( P) Ltd is in travel agency business. A Ltd purchases air tickets for its common director through B(p) Ltd and makes payment by cheque. Is it a contract covered by section 297 of the Companies Act 1956?
2. A Ltd and B Private Ltd have one common director with more than 2% shareholding in both companies. B( P) Ltd is a share broking company. A Ltd buys & sells shares of different companies through B (p) Ltd and makes payment by cheque. B (p) Ltd charges usual brokerage. Is it a contract covered by section 297 of the Companies Act 1956?
CAclubindia
