what's the meaning of substantial interest in context of company law ? Is directors of the company is also considered as person having substantial interest of the company?
3 Replies
Ankur Garg
(Company Secretary and Compliance Officer)
(114773 Points)
Replied 18 July 2009
Hi,
Meaning of substantial interest in context of company law is not defined specifically.
In companies act, 1956 Explanation to Sub section (8) of 294AA talks about substantial interest. But it is all together in a different context.
It would be wrong if you say directors of the company is considered as person having substantial interest of the company just because of his/her position in the board.
Regards
kamaljeet
(C.S)
(51 Points)
Replied 18 July 2009
Hi Somya,
As per my point of view the term Substantial Interest in not defined any where in the Companies Act. Please specify the purpose for which u want check the substantial interest of the Director.
meenu
(cs)
(416 Points)
Replied 18 July 2009
Pls. check the RBI guideline for the same.
Best Regards,
Meenu
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