Kannan (Company Secretary) (168 Points)
28 August 2011A director of a bank is proposed to be inducted in a NBFC, which already enjoys substantial working capital limits with that bank. Can he become a directors, without any violation of any section of the Companies Act, 1956. Is section 297/299 applicable?
SUNIL KUMAR JAIN
(PRACTISING COMPANY SECRETARY)
(187 Points)
Replied 29 August 2011
Dear Kannan,
Sections 297 & 299 are not applicable to the appointment of directors.
Regards,
Sunil K Jain
Practising Company Secretary
9810104162; skj13 @ rediffmail.com
Jaideep
(Service)
(1368 Points)
Replied 30 August 2011
He can be appointed as Director (as above 299 and 297 not applicable for appointment), further there will be no compliances w.r.t 297 and 299 as far as company keeps normal operational business with bank.
Regards
Jaideep Pandya
Jayesh
(.)
(38 Points)
Replied 30 August 2011
For more compliance, forthcoming Director may furnish his form 24AA at the time of appointment
LIVE Course on Foreign Exchange Management Act (FEMA)(with recording)
LIVE Form 10 B and Form 10BB: Handle Tax Audit Reports of Charitable Organizations(with recording)
CAclubindia
