23 March 2011
Sir, We have group of private companies. Co. A giving loan to Co.B . Directors of both companies are same. Shareholders are also same. Will dis contract come in Register of contracts?
Is there a list of contracts specifically for the purpose of this section?
23 March 2011
Yes, the transaction will attract Section 299 and necessary entries have to be made in the Register of Contracts maintained u/s.301 of the Companies Act, 1956.
23 March 2011
Madam, But one of the common director holds more than 2% shares in both company which is an exemption to the rule as per sec 299(6)
Even now will it come in contract register?
Please guide.
Also tell me in this case sale of property will come from A to B forming part of same group , common director holds more than 2% shares will come in contract register?
Holding of 2% of paid up share capital is not an exemption. Section 299 is applicable only when 2% of the paid up sahre capital is held by any of the directors of one company or two or more of them together.
So in your case Section 299 is very much applicable and entries in 301 registered are to be made.
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