08 May 2009
370 1B (v) if one or more directors of the one body corporate while holding, whether by themselves or together with their relatives, the majority of shares in that body corporate also hold, whether by themselves or together with their relatives, the majority of shares in the other body corporate
if the directors holding shares in a co and tht company is a share holder in a body corproate it will b applicable or not?
Kindly appreciate in the situation mentioned by you section-370(1B)(v) is not applicable.
What I understand from your question is—Ram & Shyam are two directors of ABC Limited and ABC Limited is a shareholder of XYZ Limited. In this situation and going by the language of Section-370(1B)(v) we can not consider ABC Limited and XYZ Limited under the same management.
CAclubindia
