Section 102 of Companies Act 2013 states; "Provided that where any item of special business to be transacted at a meeting of the company relates to or affects any other company, the extent of shareholding interest in that other company of every promoter, director, manager, if any, and of every other key managerial personnel of the first mentioned company shall, if the extent of such shareholding is not less than two per cent. of the paid-up share capital of that company, also be set out in the statement."
Suppose if one business in EGM is for allotment of shares. One of the proposed allottee is a company in which directors hold more than 2% of its share capital. Then, will disclosure required under section 102, as aforesaid? The shares are proposed to be allotted, so can it be said that it 'relates to or affects any other company'?
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