Sub Section 6 of Section 299 provides exemption to contracts or arrangements between two companies where the director on one company holds up to 2% of the paid up share capital of the other company.
My question is whether such an exemption is available where the other company is a company registered outside India. For example Mr A is director of I pvt Ltd (an indian company) and is also a director and employee of J Co Ltd (a Japanese Company). He is not holding any shares in both the Companies.
Whether contracts or arrangements between I Pvt Ltd and J Co Ltd are covered under exemption of subsection 6 of Section 299 of the Companies Act 1956.
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