Ashok Sharma (Propreitor) (46 Points)
10 November 2010If the company has taken a loan from it directors or relatives of its dierectors then does the same have to be mentioned in the regiester of related party transactions under section 301 of the companies act? What if the company is maintianing current accout as regards tot the loan account but at no time has it given loan to the director or relative on taken loan?
Ankur Garg
(Company Secretary and Compliance Officer)
(114773 Points)
Replied 11 November 2010
Hello,
No. It is not required to be disclosed. Reason being prima facie in your case section 297 and 299 not applicable
Entry in Section 301 register desired where section 297 and 299 is attracted. So if a director is directly or indirectly interested in a contract disclosure u/s 299 is required and accordingly entry is required to be made in Section 301 register.
Answer above is based on my personal understanding of Law. Views of other learned members solicited.
Regards
Ashok Sharma
(Propreitor)
(46 Points)
Replied 11 November 2010
Hi Ankur,
Thanks for the prompt reply. What will be the situation if the company has taken a loan from the share holders or relatives of the share holders. Will this be required to be men tioned in the register for related party transactions?
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