28 September 2010
Company has entered into an buying agreement with a propietory concern in which a director of the co is sole proprietor. The case fals under section 297 of the Comonaies Act for which Board's approval is enough. So I would like to ask u that whether disclosure of this is required to be made in Annual Report of the company. If Yes then whether it is required to be disclosed in Directors report or Auditor Report.
You have to enter the fact of the transactions in register of contracts kept u/s 301.
A record of the fact of the director concerned having disclosed his interest in the contract as per section 299, and of not having participated in the discussion and voted on the resolution as per section 300, should be made in the minutes of the meeting.
CAclubindia
