Section-301

[Gourav Arora]

Experts

Wife of Manging Director is appointed as Vice principal in school run by company. salary to the Wife of MD is paid from bank accoount of company and expense is debited in the company book as schoool expense. Wheather section 301 of company act apply here or not?.

Which section will applly ,299 or ,297?

[DR.MARIAPPAN GOVINDARAJAN]

Yes, Section 301 of the Companies Act will apply here under Section 299 of the Companies Act, 1956.

AI Summary

Related-party appointment of a director's spouse triggers company law approval requirements for corporate employment transactions. Appointment of the managing director's spouse as vice principal in a company run school, with salary paid from the company account and charged as a school expense, falls within the statutory framework governing transactions with interested directors and attracts the compliance requirements applicable to such arrangements under the Companies Act.