Contracts in which directors are interested Central Government in the case of companies having paid‑up capital of Rs. 1 crore or more, applies to contract of employment of director as managing director
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Director interested contracts: cheque treated as equivalent to cash so market price purchases may qualify as cash transactions. Payment by cheque is to be treated as the equivalent of cash for the purposes of the provision governing contracts in which a director is interested, so that purchases at prevailing market prices effected by cheque are regarded as cash payments for the rule.
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.
Director interested contracts: cheque treated as equivalent to cash so market price purchases may qualify as cash transactions.
Payment by cheque is to be treated as the equivalent of cash for the purposes of the provision governing contracts in which a director is interested, so that purchases at prevailing market prices effected by cheque are regarded as cash payments for the rule.
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