Disclosure under 299

Kamal Lahoty (Practising Company Secretary)   (274 Points)

30 July 2012  

 

Dear All,
 
Section 299(6)read as "Nothing in this section shall apply to any contract or arrangement entered into or to be entered into between two companies where any of the directors of the one company or two or more of them together holds or hold not more than two per cent of the paid-up share capital in the other company"
 
My query is
 
1. whether two percent or more shareholding clause will include both public & private company or it is only applicable to public company.
 
2. Also if relative of Director also holds 2% or more shares in a company, whether the disclosure of that company (in which his relative holds 2% shares) is required by the Director.
 
Thanks