Lawgist192Restriction on non-cash transactions involving directors
(1) No company shall enter into an arrangement by which--
(a) a director of the company or its holding, subsidiary or associate company or a person connected with him acquires or is to acquire assets for consideration other than cash, from the company; or
(b) the company acquires or is to acquire assets for consideration other than cash, from such director or person so connected,
unless prior approval for such arrangement is accorded by a resolution of the company in general meeting and if the director or connected person is a director of its holding company, approval under this subsection shall also be required to be obtained by passing a resolution in general meeting of the holding company.
(2) The notice for approval of the resolution by the company or holding company in general meeting under sub-section (1) shall include the particulars of the arrangement along with the value of the assets involved in such arrangement duly calculated by a registered valuer.
(3) Any arrangement entered into by a company or its holding company in contravention of the provisions of this section shall be voidable at the instance of the company unless--
(a) the restitution of any money or other consideration which is the subject matter of the arrangement is no longer possible and the company has been indemnified by any other person for any loss or damage caused to it; or
(b) any rights are acquired bona fide for value and without notice of the contravention of the provisions of this section by any other person.
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- 173 Meetings of Board
- 174 Quorum for meetings of Boar
- 175 Passing of resolution by circulatio
- 176 Defects in appointment of directors not to invalidate actions take
- 177 Audit committee
- 178 Nomination and Remuneration Committee and Stakeholders Relationship Committee
- 179 Powers of Board
- 180 Restrictions on powers of Board
- 181 Company to contribute to bona fide and charitable funds, etc
- 182 Prohibitions and restrictions regarding political contribution
- 183 Power of Board and other persons to make contributions to national defence fund, etc
- 184 Disclosure of interest by director
- 185 Loan to directors, et
- 186 Loan and investment by compan
- 187 Investments of company to be held in its own name
- 188 Related party transactions
- 189 Register of contracts or arrangements in which directors are intereste
- 190 Contract of employment with managing or whole-time director
- 191 Payment to director for loss of office, etc., in connection with transfer of undertaking, property or shares
- 192 Restriction on non-cash transactions involving directors
- 193 Contract by One Person Company
- 194 Prohibition on forward dealings in securities of company by director or key managerial personne
- 195 Prohibition on insider trading of securities
