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Contract in which directors are interested

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16 Points Joined March 2007
 This is query with regard to  the Companies Act. One public company has taken advance from another public company for services to be rendered in the next financial year. Two directors are common in both the companies. Is it possible to conclude that the company has entered into a contract in which the directors are interested?
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On 07 June 2007 at 03:50 Report
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Chartered Accountant
4163 Points Joined March 2007
Not necessarily if the contract entered in as per the terms and conditions prevelant in the market presently.. and there is no benefit specifically derived in monetary terms from the contract entered .. so to know the facts of the contract is must before concluding on anything...
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On 11 June 2007 at 01:43
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XBRL Training
451 Points Joined March 2007
Section 297 does not apply to the contacts between two public companies and accordingly Board's Sanction will not be required in the present case.
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On 12 June 2007 at 06:57
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CHARTERED ACCOUNTANT
162 Points Joined June 2007
Even though two public companies are outside the scope of section 297 of the companies act, compliance of section 299 of the act is mandatory unless it falls within sec 299(6).
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On 16 June 2007 at 02:39
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Chartered Accountant
66 Points Joined July 2007
Assuming that the common directors do not hold any shares or only hold shares representing less than 2% of the paid up capital then the provisions of section 297 and 299 shall not apply.
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On 31 July 2007 at 07:59
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student
22 Points Joined February 2009

Who are the interested directors for the purpose of entry in 301 register?

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On 23 February 2009 at 16:50

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