Gita (Employee) (43 Points)
12 May 2010Hi
If in a listed public company, money is given on behalf of company to a Director relative for purchase of an agricultural land.
Does dis transaction will fall under Section 295 of Companies Act, also whether entry in 301 is to be made.
Further if it comes under section 295 can co go for compounding for the same.
yes this transaction will fall under sec. 295.
because specified person include dierctor of lending co. and relative of such director.
and entry in register maintained u/s 301 is not required because that register is maintained for the section 297 or 299.
in my opinion comapny or director who is in default can go for compounding u/s 621 A.
Piyush Jain
(CA)
(283 Points)
Replied 13 May 2010
yes this fall under 295. the company has to take prior permission of central government.
Although there are many bail out packages also available.
Gita
(Employee)
(43 Points)
Replied 13 May 2010
Hi
can u tell me whether sec 295 is applicable or not
or can co just enter a MOU with the Director relative.
CAclubindia
