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Register u/s 301(1)

Jaideep (Service) (1368 Points)

17 December 2010

A holding company provided interest free loan to its WOS B. Under section 372A the said transaction is exempt as the section doesn't apply to loan made by holding company to its wos. 372A (8) (c).

Directors of A are also director and member of B. How to comply section 297 and what entry need to be passed under Reg 301(1).

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5 Replies

Jayashree S Iyer (Company Secretary) (3224 Points)
Replied 17 December 2010

Section 297 applies only to sale, purchase or supply of any goods, materials or services.

Providing loans does not fall within the scope of this section and hence not applicable.

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Jaideep (Service) (1368 Points)
Replied 17 December 2010

Thanks for clarification.

But providing loan is not a service??? and What about entry in register u/s 301(1), cause section 299 is applicable here.

Regards

Jayashree S Iyer (Company Secretary) (3224 Points)
Replied 17 December 2010

However sections 299 and 301 will be applicable as they cover all contracts or arrangements in which directors are concerned or interested directly or indirectly . however only if the shareholding of the director is more than 2% of the paid up share capital in the other company.

udit sharma (Company Secretary) (2303 Points)
Replied 17 December 2010

Originally posted by : Jayashree S Iyer
	However sections 299 and 301 will be applicable as they cover all contracts or arrangements in which directors are concerned or interested directly or indirectly . however only if the shareholding of the director is more than 2% of the paid up share capital in the other company.