section 299 of the Companies Act 1956
(Querist) 09 May 2008
This query is : Resolved
In register maintained under the Companies Act we see register of contracts pursuant to section 301 read with section 299 in which the related party transactions entries are narrated. If a director concerned is holding less than 2% of the paid up capital should he be a related party? What is the meaning of person interested in this regard?
(Expert) 10 May 2008
Directors interseted under the relevant sections means that if a company is going to enter into contarct or arrangement with any third party or otherwise, and the said director is related to the benefits whther directly or not,the said director must disclose it in a board meeting.