Hi, my question is - one of our directors is a director in 15 companies of which 13 are public limited and 2 private limited. The 2 private limited companies are direct subsidiaries of a foreign company and that foreign company is subsidiary of indian public limited company. For section 278, please confirm if the 2 private limited companies would be counted or left out in total no. 15
Dear Khushboo,
As per my understanding of section 278 the above 2 companies should be counted to reckoned the limit mentioned u/s 275. Only a purely private company is covered u/s 278 read with 275.
However wait for other member’s opinion.
Best Regards
Agree wid Ankur Sir.
I have a question, please clarify me, its urgent
What is the effet, if the Board accepted the non-stamping transfer deed?
Such approval of non stamped transfer deed would be null and void as the same is against the provision of section 108.
Transfer deed should be stamped as per section 108 before approving the transfer by the board.
Dear Ankur,
Could you please let me know, is there any penalty to the Directors??
If there is any penalty, please let me know under which section or which act??
It is duty of the directors to register transfer of share in accordance with section 108. As mentioned earlier transfer would be void without stamp duty and this is the penalty under section 108. There is no specific penalty for directors as such.
However if someone got stuck due to this violation/negligence of directors he may file a civil suit against the directors. This is my personal understanding.
Wait for other members’ opinion.
Best Regards
CAclubindia
