23 July 2009
There is query that if an employee of Public (unlisted) company, is relative of director, director is substantial interested and his share holding is more than 20%. which sections of companies act will applicable and what compliance has to be fulfilled. Kindly let me know. e-mail Id- manoj_thanvi@rediffmail.com, manoj.thanvi@gmail.com Please solve the same
Meaning of substantial interest in context of company law is not defined specifically.
In companies act, 1956 Explanation to Sub section (8) of 294AA talks about substantial interest. But it is all together in a different context.
It would be wrong if you say director have substantial interest just because one of the relative of the director is an employee of Public (unlisted) company.
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