Dear All,
Facts:
X Limited – Listed Company
Y and Co. – Partnership Firm
Z and Co. – Partnership Firm
Mr. A – who is Managing Director of a XYZ LIMITED
Mr. B – Partner in Y and Co. along with Mr. A
Mr. B – Partner in Z and Co. but Neither Mr. A is Partner nor any relative as per Schedule 1(A) of Mr. A is partner
Now as per section 297 X Limited cannot enter into contract with Y and Co but Company can enter into Contract with Z and Co.
I want to appoint Mr. B under Section 314 in the Place of Profit.
My Query is that after appointing Mr. B in the place of profit (as a consultant or employee) will the Contracts entered into with Z and Co. will attract Section 297.
Kindly Revert as soon as possible
Thanks in advance
Dinesh
CAclubindia
