25 September 2009
If pvt. ltd. co. gives advance to HUF for purchase of property of HUF and director shareholder holding more than 20% share in co. is karta of HUF, then is this covered u/s 297 or 299 of Co. Act. What resoltuion is required for the same.
Section 297 is not applicable as section 297 is not talking about HUF.
However section 299 and 300 are 100% applicable. Director need to disclose his interest in the board meeting considering the proposal. Also he can't count in quorum and can't vote u/s 300.
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