Section 299
This query is : Resolved
MUKESH JOSHI
(Querist)
06 February 2012
when we say that a person is interested through her relatives, what is the meaning of that & how we will know that in how many companies that he is interested.
Charu Srivastava
(Expert)
06 February 2012
The term relative shall be construed in accordance with the section 6 of the Companies Act, 1956.
You can know the Directorship of the person through MCA Portal.
You can know the Directorship of the person through MCA Portal.
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CS Mitesh Mehta
(Expert)
06 February 2012
Section 299 applies to contracts and arrangements, in which a director is concerned or interested in any way.
The question whether the scope of section 299 is limited to the contracts and arrangements with only those relatives of a director, which are specified in the Act, has not been dealt with yet. The Act defines the term 'relative' and specifies in Schedule 1A, 22 different relations. Section 299, unlike section 297, does not say that it applies to the contracts and arrangements with only certain parties or relatives. It may, therefore be so construed as to apply even to those contracts and arrangements in which a director is interested through a relative which is not specified in the list of relatives given in Schedule 1A. e.g. contract with father-in law of a director.
Under Section 299(3), directors have to disclose the interest by general notice to the company in FORM 24AA. You can check that to know the companies in which he is interested.
The question whether the scope of section 299 is limited to the contracts and arrangements with only those relatives of a director, which are specified in the Act, has not been dealt with yet. The Act defines the term 'relative' and specifies in Schedule 1A, 22 different relations. Section 299, unlike section 297, does not say that it applies to the contracts and arrangements with only certain parties or relatives. It may, therefore be so construed as to apply even to those contracts and arrangements in which a director is interested through a relative which is not specified in the list of relatives given in Schedule 1A. e.g. contract with father-in law of a director.
Under Section 299(3), directors have to disclose the interest by general notice to the company in FORM 24AA. You can check that to know the companies in which he is interested.
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