section 299 of the companies act

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sandeep sahu (Querist)
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07 July 2010 Dear Ankur Sir
Section 299 is automatically invoke , as section 295 says about loan to director or his relatives and also incase of 372A also generally a private company finaces within its close circle(i.e group) .So pl. put your opinion whether sction 299 is applicable in this case ( i.e laon or advance made )

Ankur Garg

Ankur Garg (Expert)
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07 July 2010 As suggested earlier the director must disclose his interest in the transaction (Loan to director) in the board meeting u/s 299.

Section 299 is applicable because company is providing loan to its director. So according to me director must be considered interested in the transaction.

Regards

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