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..

Follow Query

Report Abuse

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.

Previous

Next

You need to be the querist or approved LAWyersclub expert to take part in this query .

Click here to login now

Law

Similar Resolved Queries :