Law
Asha
(Querist) 24 August 2012
This query is : Resolved
Whether Section 300 of the companies act will be applicable in following situation?
- Mr. P is a director in XYZ Ltd
- PQR Ltd has entered into leasing transaction with XYZ Pvt Ltd Co. & DEF Pvt Ltd.
- Now Mr. P is not director or member in XYZ Pvt Ltd Co. or DEF Pvt Ltd. But Sons of Mr. P are Director in XYZ Pvt Ltd & holds 26% and wife of Mr.P holds 50% in DEF Pvt. Ltd.
Now, Question arose whether section 300 will be trigerred in case where director is holding less than 2% but his relative is holding more percentage???
Please give reference of your reply, if possible..
A V Vishal
(Expert) 25 August 2012
S.300 is not applicable refer S.300(2) Sub-section (1) shall not apply to-
(a) a private company which is neither a subsidiary nor a holding company of a public company;
Also refer S.300(d)(ii)
J K Agrawal
(Expert) 26 August 2012
Crux of section 300 is to save interest of share holders of a Public Limited company only.
