Dear All,
A private company engages an advocate for its legal services on a continuous basis.
The advocate is a relative of a director of the Company.
Kindly advice if section 297 of the companies act applies to such a legal service?
Also, if yes, then is the company needed to comply with the said section for each bill that the advocate raises for different financial years?
Section 297 is applicable only if the director or his relative is interested in the contract put before company. IN the present case the advocate is only provided services in his ordinary course & is not interested in any of the contracts put before the co. SO the provison of section 297 are N/A.
But the advocate being a relative of a director of the comapny, doesnt he automatically become interested in the contract?
I want to understand this situation asd per the provisions of law.
RMA And Associates LLP
New Delhi
CA Inter
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S.B.G. & CO. CHARTERED ACCOUNTANTS
New Delhi
CA Inter
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Abic and Mani Chartered Accountants
Kottayam
B.Com
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CCI
Pro
CAclubindia
