Monday, June 23, 2008

Companies Act_Practical Problems_10

X Constructions P Ltd has purchased Transferable Development rights (TDR) from Y builders Pvt. Ltd. Paid up capital of both companies is 3 crores and Mr. D is common Director in both the companies, Whether TDR are “goods / services” for the purposes of section 297 ? If Mr. Rajiv is a common director in X & Y who does not hold any shares in either of the companies, can it be said that transaction between X & Y attracts 297 but not 299? Whether answer would be different if Mr. Rajiv was holding 5 % shares as nominee of some other person?

Companies Act_Practicle Problems_9

X Constructions P Ltd has purchased Transferable Development rights (TDR) from Y builders Pvt. Ltd. Paid up capital of both companies is 3 crores and Mr. D is common Director in both the companies, Whether TDR are “goods / services” for the purposes of section 297?