Khushboo Maheshwari (Company Secretary) (548 Points)
31 March 2010Hi, 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
Ankur Garg
(Company Secretary and Compliance Officer)
(114783 Points)
Replied 01 April 2010
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
Muruganandhan
(Trainee)
(35 Points)
Replied 01 April 2010
I have a question, please clarify me, its urgent
What is the effet, if the Board accepted the non-stamping transfer deed?
Ankur Garg
(Company Secretary and Compliance Officer)
(114783 Points)
Replied 01 April 2010
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.
Muruganandhan
(Trainee)
(35 Points)
Replied 01 April 2010
Dear Ankur,
Could you please let me know, is there any penalty to the Directors??
Muruganandhan
(Trainee)
(35 Points)
Replied 01 April 2010
If there is any penalty, please let me know under which section or which act??
Ankur Garg
(Company Secretary and Compliance Officer)
(114783 Points)
Replied 01 April 2010
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
