Discloser of interest by the director
This query is : Resolved
16 October 2009
One of the director is holding 29% of the total paid share capital (also voting power to that extent)in M/s. ABC. He is also a director in M/s. XYZ in which he holds 1% of the total paid up share capital.Both the company are private limited company.
M/s. XYZ has granted loan to M/s. ABC. M/s. ABC is paying the interest on the same.
My query
Do the said transaction comes under purview of section 299 of the companies Act 1956?
REgards
Manoj
M/s. XYZ has granted loan to M/s. ABC. M/s. ABC is paying the interest on the same.
My query
Do the said transaction comes under purview of section 299 of the companies Act 1956?
REgards
Manoj
16 October 2009
Nothing in Section 299 is applicable to any contract or arrangement between two companies, if any one or more of the directors of the one company together holds / hold 2% or less of the paid–up share capital in the other company. [Section 299 (6)].
This limit of 2% has to be taken either as an individual director’s holding or the aggregate holding of two or more directors. There fore section 299 is not applicable here in this case.
This limit of 2% has to be taken either as an individual director’s holding or the aggregate holding of two or more directors. There fore section 299 is not applicable here in this case.
16 October 2009
But still the concern director needs to disclosed his interest in M/s ABC Pvt Ltd.
18 October 2009
Agree with chetan.
Never rely on section-299(6) as indirect interest is always there. Disclosure of interest is necessary in your case.
Aslo consider section 300.
Never rely on section-299(6) as indirect interest is always there. Disclosure of interest is necessary in your case.
Aslo consider section 300.
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
- REGARDING GST ON COMMERICIAL PROPERTY
- Is this income indian or foreign income?
- 15ca /15cb whose income tax login? remitter or nri seller's login?
- RCM applicability on Rent Paid by Registered Person to Unregistered Landlord for Residental Building
- ITC temporary reversal and reclaim
- Regarding Documentation & Compliances for Opening of Unit of Pvt Ltd.
- GST on export of services and Input Credit
- TDS U/S. 194NF
- Applicable TDS rate for sale of property in Nov 2024
- RCM INVOICING FROM NOV-2024
- 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?
- Query for dubts
- Regarding einvoice taken on nil rated sales
- Strategical investment in Public listed company
- CASE INTIMATION OF LIABILITY UNDER SECTION 73(5)(Rule 142(1A)
- Need to correct "Whether it is last installment " response in Form 26 QB
Trending Online Classes
CAclubindia
