21 December 2010
what dis para means u/s 299...........Nothing in this section shall apply to any contract or arrangement entered into or to be entered into between two companies where any of the directors of the one company or two or more of them together holds or hold not more than two per cent of the paid-up share capital in the other company.]
This means that the provisions of section 299 shall not be applicable when a contract or arrangement is proposed to be entered into two companies and Director of One Company either singly or jointly with other Directors of the same Company is not holding more than 2% of the paid up capital of the other Company.
21 December 2010
Agree with Udit. Section 299 is applicable only when the directors shareholding is more than 2% of the paid up capital in the other company.
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