Parties covered under section 301 of companies act 1956

Others 15148 views 5 replies

In the context of CARO 2003, Clause     requires an auditor to report on Loans taken from/granted to "Companies Firms or other Parties entered in the register u/s 301."

The query is whether a director of the same co, is such a party??

Replies (5)
No , director will not be covered in that...

Section 301 refers to  all parties covered u/s 297 and 299.  These will include:

 

a) All directors of the company

b) All relatives of directors of the company

c) Firms in which any director of the company or his relative is a partner

d) Any other partner of such a firm

e) Private company of which the director of our company is a member or director

f) Body corporate or firm of which the director of our company is a director or member.

 

I may be permitted to refer to CS P C Agarwalji's reply with due respect to his views, I think while section 297 and 299 applies to all the parties listed by him, the reference in CARO 2003 regarding disclosure by auditor of Loans given or taken from "Companies firms and other parties in which directors are interested" should not logically include the Director himself unless the law intended a roundabout way of saying that the director himself is a party in whom he is interested. Therefore it would seem out of context to include Loans from the Directors for this particular reporting clause. All members views please

"Granting loan to companies covered in the register maintained under section 301 of companies act ,1956 "

will that mean loans given under sec295.

 

 

 

"Granting loan to companies covered in the register maintained under section 301 of companies act ,1956 " will that mean loans given under sec295.


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