24 September 2009
I have aske a query yesterday regarding if a public company gives loan to a society registerd under the Societies Registration Act, 1860 of which the director of the Compani is a member, does it attract Section 295 ? Please give me clarification over this issue.
30 September 2009
Yes, Section 295 will be applicable if directors of company together has not less than 25 % voting rights, as per Section 295(1)(d). Also Body Corporate includes corporative society.
30 September 2009
Thanks a lot for this reply, i just want to confirm one thing i.e. I have read that Society is a body corporate only for the purpose of holding property & entering into contracts, Is this granting of loan to the society a contract that's why Section 295 of the Companies Act is attracted??? Please reply as soon as possible.
(1) any body corporate at a general meeting of which not less than twenty-five per cent of the total voting power may be exercised or controlled by any such director, or by two or more such directors together; or
(2) any body corporate, the Board of directors, managing director, or manager whereof is accustomed to act in accordance with the directions or instructions of the Board, or of any director or directors, of the lending company
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