In case of two public companies viz XYZ Limited (having 7 directors) and ABC Limited (having 4 directors all are same that of XYZ limited and having shareholding above 2% in XYZ Limited) an agreement has been entered. Entry is required to be made in register u/s 301. In XYZ limited there will be no problem because of remaining directors would form valid quorum.
However, in case of ABC limited how the entry would be made? Because all directors are interested and they cannot take part in the discussion niether their presence can be counted (section 300)
CAclubindia
