03 April 2012
Provisions of Section 300 do not apply to private companies.
Unless therefore the AOA of a private company contains a prohibitory clause in terms of section 300, an interested director of a private company can participate in the discussion on the matter in which he is interested; his presence for the purpose of quorum in respect of such matter may be counted;he can vote on a resolution in respect of such matter.
04 April 2012
The only legal consequence of a director voting on a resolution in which he is interested would be that his vote had to be excluded. A director, who knowingly contravenes the provision shall be punishable with a fine up to Rs. 50,000/-.
Any Business transacted or resolution passed is invalid unless quorum is present.
CAclubindia
