Director - Relative Sec
This query is : Resolved
06 April 2008
Sir
if there is one Listed Co. and one NBFC Co.
The Real Uncle son of Listed Co. Director is the Director of the NBFC Co. and the said NBFC Co. give finance to the listed co.
Wht is the responsibility of the director of listed co. towards this
Please guide
if there is one Listed Co. and one NBFC Co.
The Real Uncle son of Listed Co. Director is the Director of the NBFC Co. and the said NBFC Co. give finance to the listed co.
Wht is the responsibility of the director of listed co. towards this
Please guide
07 April 2008
As per Schedule IA of companies Act 1956 uncle and his children are not relatives.
07 April 2008
Then provisions of section 299, 300 and 301 relating to Interested directors are applicable.
07 April 2008
MR. VIJAY
I AGREE WITH OUR ESTEEMED CLUB MEMBER SRI SRINIVASA RAGHAVAN'S REPLY AND ADD BELOW WHAT WAS REPLIED BY ME TO YOUR SIMILAR QUERY ON 5 TH APRIL 2008.
WHETHER A LISTED COMPANY OR UNLISTED COMPANY,DISCLOSURE OF INTEREST BY AN INTERESTED DIRECTOR IS A COMPANY'S ACT 1956 REQUIREMENT.
SECTION 297 OF COS. ACT 1956 REQUIRES BOARD'S SANCTION FOR CONTRACTS IN WHICH DIRECTORS(INCL. RELATIVES OF DIRECTORS) ARE INTERESTED.
IF SUCH CO. HAS A PAID UP CAPITAL OF RS. ONE CRORE OR MORE, PREVIOUS CENTRAL GOVT. APPROVAL REQUIRED.
BUT EXCEPTIONS(THIS SECTION DOES NOT APPLY) ARE PROVIDED FOR SUCH SALE/PURCHASE OR SUPPLY OF MATERIAL OR SERVICES CONTRACTS IF
1.THOSE CONTRACTS ARE EXECUTED FOR CASH AT PREVAILING MARKET PRICE.
2.IF BOTH PARTIES( THE COMPANY AND INTERESTED DIRECTOR /RELATIVE) REGULARLY TRADE OR DOES SUCH BUSINESS .
SEC 299 AND SEC 300 REQUIRE INTERESTED DIRECTOR TO DISLOSE HIS INTEREST IN SUCH CONTRACTS TO THE BOARD AND NOT TO PARTICIPATE IN DISCUSSION / VOTING AT SUCH BOARD MEETINGS.
SEC 301 OF COS. ACT REQUIRES MAINTAINING REGISTER OF CONTRACTS IN WHICH DIRECTORS ARE INTERESTED.
RELATED PARTY TRANSACTIONS AS PER ACCOUNTING STANDARDS OF ICAI ARE TO BE REPORTED BY THE COMPANY IN THE ANNUAL REPORT-NOTES ON ACCOUNTS -WHICH IS SIGNED BY STATUTORY AUDITOR OF THE COMPANY ALONG WITH DIRECTORS OF THE COMPANY .
IT IS IMMATERIAL WHO DECIDES AND WHO EXECUTES SUCH TRANSACTIONS IN A COMPANY SET UP.
AS FAR AS LISTED COMPANY' REQUIREMENTS IS CONCERNED , REPORTING IS REQUIRED UNDER SEBI REGULATIONS- UNDER REG 6 AND
REG. 8 .IN EVERY MARCH YEAR END AND AT THE TIME OF BOOK CLOSURE AND DIVIDEND DECLARTION.
THESE REGULATIONS 6 AND 8 DEAL WITH SHARES HELD BY PROMOTERS AND RELATIVES AND CONTROLLING GROUP IN A COMPANY.
IN ANY CASE, EVERY LISTED COMPANY REPORTS AS PER LISTING AGREEMENT CLAUSES 35, 41 AND OTHER CLAUSES OF THE LISTING AGREEMENT ,BY WAY OF A NOTICE TO STOCK EXCHANGES ABOUT BOARD MEETINGS-SENDING AGENDA OF BOARD MEETINGS- ABOUT UNAUDITED RESULTS AND ALSO REPORTS SHAREHOLDING PATTERN OF THE COMPANY (EVERY QUARTER) INCL. PROPMOTER AND NON PROMOTER GROUPS.
THESE BOARD MEETING MINUTES ARE ALSO REPORTED WHICH NECESSRILY CONTAIN DETAILS OF CONTRACTS IN WHICH DIRECTORS ARE INTERESRED.
R.V.RAO
MR. VIJAY
I AGREE WITH OUR ESTEEMED CLUB MEMBER SRI SRINIVASA RAGHAVAN'S REPLY AND ADD BELOW WHAT WAS REPLIED BY ME TO YOUR SIMILAR QUERY ON 5 TH APRIL 2008.
WHETHER A LISTED COMPANY OR UNLISTED COMPANY,DISCLOSURE OF INTEREST BY AN INTERESTED DIRECTOR IS A COMPANY'S ACT 1956 REQUIREMENT.
SECTION 297 OF COS. ACT 1956 REQUIRES BOARD'S SANCTION FOR CONTRACTS IN WHICH DIRECTORS(INCL. RELATIVES OF DIRECTORS) ARE INTERESTED.
IF SUCH CO. HAS A PAID UP CAPITAL OF RS. ONE CRORE OR MORE, PREVIOUS CENTRAL GOVT. APPROVAL REQUIRED.
BUT EXCEPTIONS(THIS SECTION DOES NOT APPLY) ARE PROVIDED FOR SUCH SALE/PURCHASE OR SUPPLY OF MATERIAL OR SERVICES CONTRACTS IF
1.THOSE CONTRACTS ARE EXECUTED FOR CASH AT PREVAILING MARKET PRICE.
2.IF BOTH PARTIES( THE COMPANY AND INTERESTED DIRECTOR /RELATIVE) REGULARLY TRADE OR DOES SUCH BUSINESS .
SEC 299 AND SEC 300 REQUIRE INTERESTED DIRECTOR TO DISLOSE HIS INTEREST IN SUCH CONTRACTS TO THE BOARD AND NOT TO PARTICIPATE IN DISCUSSION / VOTING AT SUCH BOARD MEETINGS.
SEC 301 OF COS. ACT REQUIRES MAINTAINING REGISTER OF CONTRACTS IN WHICH DIRECTORS ARE INTERESTED.
RELATED PARTY TRANSACTIONS AS PER ACCOUNTING STANDARDS OF ICAI ARE TO BE REPORTED BY THE COMPANY IN THE ANNUAL REPORT-NOTES ON ACCOUNTS -WHICH IS SIGNED BY STATUTORY AUDITOR OF THE COMPANY ALONG WITH DIRECTORS OF THE COMPANY .
IT IS IMMATERIAL WHO DECIDES AND WHO EXECUTES SUCH TRANSACTIONS IN A COMPANY SET UP.
AS FAR AS LISTED COMPANY' REQUIREMENTS IS CONCERNED , REPORTING IS REQUIRED UNDER SEBI REGULATIONS- UNDER REG 6 AND
REG. 8 .IN EVERY MARCH YEAR END AND AT THE TIME OF BOOK CLOSURE AND DIVIDEND DECLARTION.
THESE REGULATIONS 6 AND 8 DEAL WITH SHARES HELD BY PROMOTERS AND RELATIVES AND CONTROLLING GROUP IN A COMPANY.
IN ANY CASE, EVERY LISTED COMPANY REPORTS AS PER LISTING AGREEMENT CLAUSES 35, 41 AND OTHER CLAUSES OF THE LISTING AGREEMENT ,BY WAY OF A NOTICE TO STOCK EXCHANGES ABOUT BOARD MEETINGS-SENDING AGENDA OF BOARD MEETINGS- ABOUT UNAUDITED RESULTS AND ALSO REPORTS SHAREHOLDING PATTERN OF THE COMPANY (EVERY QUARTER) INCL. PROPMOTER AND NON PROMOTER GROUPS.
THESE BOARD MEETING MINUTES ARE ALSO REPORTED WHICH NECESSRILY CONTAIN DETAILS OF CONTRACTS IN WHICH DIRECTORS ARE INTERESRED.
R.V.RAO
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Inventory of finished goods
- Disallowance of Section 43B(h) to sez units
- Sale of property furniture sale
- RCM INVOICING FROM NOV-2024
- Clarification on Documentation of Paid-Up Capital Contribution by Directors
- REGARDING 25 AS DATE OF PAYMENT AND DATE OF BOOKING
- Confusion around Form 26QB fields
- GST Regis.
- Quiery in relation to GST liability in case of an advocate who has obtained GST registration.
- Tds on building rent monthly
- As per schedule III of balance sheet how to pass journal entry
- Is correct way to find out capital of individual on 31st March
- Individual capital equal to which assets of balance sheet
- LAST YEAR 2022-23 ITC IN NEXT YEAR 2023-24 REPORITNG IN GSTR-9
- MIS MATCH OF INVOICE NUMBER
- IGST Credit-Show cause notice issued-confusion
- Issue of gst e invoice
- How to adjusted advances given or receipt
- Foreign vendor without PAN unable to to register due to non receipt of OTP on foreign number ?
- 133(6) DIN INVALID format error - ->WHERE TO REPLY 133(6) notice?
Trending Online Classes
CAclubindia
