Sumit Jaiswal (Company Secretary) (818 Points)
11 August 2011Can anyone kindly explain me the meaning of Section 295(1)(e). It states the following words:
(e) 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.
I wanted to know what defines 'accustomed to act in accordance with the directions or instructions'. How such relationship can be defined?
vishnupriya
(CA Final)
(1418 Points)
Replied 11 August 2011
it means a body corporate which is being influenced or run on the directions made by the one or more Director(S) of the lending company.
It is just like Directors having any direct or Indirect benefit from the body corporate.
CAclubindia
