Interested director contracts: board consent required; professional legal services excluded and managing director employment not subject to proviso approval. Section 297(1) requires board consent for contracts between a company and a director or related firm; professional services like those of solicitors and advocates fall outside the scope of section 297(1). The proviso requiring prior Central Government approval for qualifying companies does not apply to employment contracts appointing a director as managing or whole time director, since directors hold a fiduciary position and their remuneration and appointments are governed by the articles and specific statutory provisions.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Interested director contracts: board consent required; professional legal services excluded and managing director employment not subject to proviso approval.
Section 297(1) requires board consent for contracts between a company and a director or related firm; professional services like those of solicitors and advocates fall outside the scope of section 297(1). The proviso requiring prior Central Government approval for qualifying companies does not apply to employment contracts appointing a director as managing or whole time director, since directors hold a fiduciary position and their remuneration and appointments are governed by the articles and specific statutory provisions.
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