Disclosure of interest by directors

Others 761 views 2 replies

manpreet.kaur

Student

184 Points Joined September 2012

ABC LTD COMPANY WANTS TO ENTER INTO A CONTRACT OF SOME WORK TO BE DONE WITH A COMPANY WORTH RS 1 CRORE.. WHERE XYZ PVT LTD IS A PARTNER IN WHICH WIFE OF THE CHAIRMAN OF ABC LTD IS A DIRECTOR...(SO INDIRECTLY JOB IS BEING DONE THROUGH XYZ PVT LTD) WHETHER CENTRAL GOVT APPROVAL IS REQD OR BOARD APPROVAL IS SUFFICIENT... N WHAT DISCLOSURES ARE REQD TO BE MADE BY CHAIRMAN OF ABC LTD .....PLZ TELL IN BOTH CASES.. WHEN XYZ PVT LTD HOLDS MAJORITY SHARES i.e. 51% OR MINORITY SHARES i.e. 49% IN THAT COMPANY WITH WHICH ABC LTD IS ENTERING INTO CONTRACT WITH ... PLZ EXPLAIN WITH RELEVANT PROVISIONS..

Replies (2)

Guest

Dear Manpreet,

Please clarify about the nature of contract and the paid up share capital of the contractor company and the contractee company. Also, clarify about the type of the contractee company (whether public/private). Section 297 applies to all companies (public/private), but there are certain criterias to be ascertained inorder to answer your query. If the case is hypothetical, then please assume the figures.

Regards,

Veeral Gandhi