Interested Directors

Hello!

As per my views sec 299 (6) talks abt each director of a co. that they dnt hold shares more than 2%. in other co. So, u cant take only Mr. A's shareholding u have to take the shareholding of other directors too in the other co. And as per that decide ur case.................

Contary views are welcomed.

Regards

Nidhi

A general notice is to be given under section 299(3).

Ankur Sir,

Section 299(3) talks about general disclosure i.e yearly disclosure relating to list of companies in which he is a director.

But my query relates to any contract or arrangement entered into between two companies in which Mr.A is a common director.

Please give your views.

In this case, section 299(6) is irelevant.Since he is a director in both the companies he has to make adequate disclosure to the Board of Company.

The exemption can be claimed only if he is director of say A company and also shareholder in company B not a director and his holding in co. B is less than 2%.

experts view r welcomed.....

I agree with Preet's view. Though  A does not become interested by virtue of shareholding , but becomes interested by virtue of

directorship and so he cannot claim exemption under 299  (6) and not relevant  in the instant case and hence the disclosure

needs to be made.

Experts views are  welcome.