Sec.299 and 301 of companies act

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

07 October 2013 Rent of office paid to director should be considered contract or arrangement as per U/s 299 and to be mentioned U/s 301 of the companies act?

Ajay Mishra

Ajay Mishra (Expert)
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07 October 2013 As per my understanding it will not be entered in the Register maintained under section 301 of the Companies Act.

Because if suck kind of contract will be considered then most of the company will covered under such contract.

Ajay Mishra

Ajay Mishra (Expert)
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07 October 2013
Section 297 does not apply to:

1. Giving or taking loans.
2.Contract in respect of immovable property (as it is not 'good' ).{Letter No. 9/4190-CL-X dated 27.03.1990}.
3.Contract between two public Companies.
4.Contract of employment of director or managing or whole time director.[ Circuler No.8/11/75-CL-V dated 27.03.1975]
5.Contract for employment of relative of director.
6.Contract entered into by the company with the dealer on principle to principle basis. [Circuler No. FM 8/297/56-PR dated 02-08-1956]
7. Professional services of the nature given by firms of solicitors and advocates, etc.[circuler No. 8/11/75-CL-V dated 05.06.1975]
8.hiring of office premises on rent as the transaction is in immovable property. [Department Clarification dated 10-09-1990]

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Sanket

Sanket (Expert)
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07 October 2013 I believe a Board Resolution for entering into the
lease agreement will be sufficient for his
purpose.
Don't forget to obtain Form 24AA under Sec 299
from such director, at or before the meeting at
which this matter is to be considered by the
Board.
Others views are solicited.

Sanket

Sanket (Expert)
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07 October 2013 however In the case of pvt ltd. section 300 is
not applicable.