Section 297 applicability
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
30 May 2013
A Ltd and B Pvt Ltd entered into an contract for supplying goods. S. 297 was not attracted at the time of entering agreement. Later on a common director came into the scene. Does the consent of Board of Directors required to be taken or Disclosure in 24AA will be sufficient.
Again later on few terms & conditions were changed. Now will this be regarded as new contract and Sec 297 be applicable? Does the company need to take coard's consent?
Again later on few terms & conditions were changed. Now will this be regarded as new contract and Sec 297 be applicable? Does the company need to take coard's consent?
Ajay Mishra
(Expert)
16 June 2013
Hi
If at the time of entering in to contract such person is not a director then the provision of section 297 is not applicable.
In the second case regarding change in terms and condition, in that case they will be treated as interested director and Board will take consent on the same.
If at the time of entering in to contract such person is not a director then the provision of section 297 is not applicable.
In the second case regarding change in terms and condition, in that case they will be treated as interested director and Board will take consent on the same.
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