Dear All,
I have one query;
One of the Company - ABC Pvt Ltd, having paid up capital more than Rs. 1 crore and a Non executive Director X in the ABC Pvt Ltd has got business from a Company PQR Pvt Ltd. Director X is not related to PQR Pvt Ltd in any sense or neither of his relatives are related.
Director X has got business from PQR Pvt ltd in the form of Job work. Now, Director X is paid commission for the same in lieu of remuneration by ABC PVt Ltd. The commission paid by ABC pvt Ltd is not a part of the contract. It is an independent transaction.
My query is: whether such a transaction attracts the provision of sec 297 as there is an implied (whether oral or written) contract between ABC and Director X?
Thanking in advance.
CAclubindia
