Section 297 of Companies Act
This query is : Resolved
24 February 2010
Company is getting into a lease agreement with the its director by hiring the car of the director. Which section of companies act be applicable?Will section 297 be applicable
02 March 2010
As per my Knowledge,
Section 297 deals with consent for contracts in which directors are interested Section 297 (1)(a) says that company shall not enter into contracts with the company for sale, purchase or supply of any goods, materials or services
here hiring of car comes under services hence consent of Board is required
again check capital of company if its more than Rs1 Cr then Central Government consent is required except if it falls under exemptions given under subsection 2
Section 297 deals with consent for contracts in which directors are interested Section 297 (1)(a) says that company shall not enter into contracts with the company for sale, purchase or supply of any goods, materials or services
here hiring of car comes under services hence consent of Board is required
again check capital of company if its more than Rs1 Cr then Central Government consent is required except if it falls under exemptions given under subsection 2
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