Dear All!
Please clarify whether in the following situation the transaction is to be disclosed in 301 register.
A Pvt Ltd enters into a transaction with B Ltd for availing some service. Mr.X, who is the director of A pvt Ltd is also the director B Ltd. Should the transaction be recorded in 301 register?
Thanks in advance!
For A Pvt Ltd:
Sec.297 is not applicable (Since contract is with a public company).
Sec.299 will be applicable if the director(s) hold 2% or more of paid-up share capital of B Ltd.
Sec.301 will be applicable if Sec.299 is applicable.
For B Ltd:
Sec.297 wil be applicable (since dealing with a Pvt Company) subject to provisions of sub-section (2).
Sec.299 will be applicable if the director(s) hold 2% or more of paid-up share capital of A Pvt Ltd.
Sec.301 will be applicable.
Suppose A Pvt Ltd grants to B Ltd in which the director of A pvt Ltd is also a director. Does the same require disclosure in 301 register?
CAclubindia
