Deepak Maharishi (CS) (514 Points)
08 June 2010Can anybody suggest me on the following:
Certain transaction are not covered under 372A or are expemt. Do we still require to enter the same in the register of 372A and simultaneously marking a comment in it as "not applicable" or "not required"
or
There is no need to enter such transactions in the register at all??
Thanks and regards
Deepak Maharishi
Deepak Maharishi
(CS)
(514 Points)
Replied 08 June 2010
Dear Shruti,
Thanks.
What will be the status of the transaction under section 297(1) and 299 which are exempt under respective provisions.
Are they required to be entered into 301 register??
Thanks and regards
Deepak Maharishi
Ankur Garg
(Company Secretary and Compliance Officer)
(114773 Points)
Replied 08 June 2010
Dear Sir,
The language used by section 372A(5) is:
Every Company shall keep a register showing……….under sub-section (1) namely:--------
In my view and as per my interpretation of language used in sub-section (5) if the transaction is not covered under section 372A or exempt from the applicability of section 372A then there is no need to enter the particulars/transaction in the inter-corporate register maintained under section 372A(5).
In other words if the applicability of section 372A(1) is removed by section 372A(8) then there is no need to follow section 372A(5).
You are requested to wait for other opinions.
Best Regards
Ankur Garg
(Company Secretary and Compliance Officer)
(114773 Points)
Replied 08 June 2010
We may use the same interpretation for:
1. Section 301 read with section 297.
2. Section 301 read with section 299.
If the transaction is totally exempt from section 297 and 299 nothing is required to be entered in 301 register. But section 297 and 299 are two different sections.
There may be a transaction where a director is interested u/s 299 but totally exempt by section 297. Here we have to enter the transaction in the 301 register by virtue of the applicability of section 299.
To conclude for the purpose of 301 register entry the applicability of section 297 and 299 needs to checked separately.
Best Regards
CAclubindia
