Will the shareholding of the relatives also be considered in determining the SBOs?
As per the provision of the section 184(2) of the Companies Act'2013,
[(2) Every director of a company who is in any way, whether directly or indirectly, concerned or interested in a contract or arrangement or proposed contract or arrangement entered into or to be entered into—
(b) with a firm or other entity in which, such director is a partner, owner or member, as the case may be,
shall disclose the nature of his concern or interest at the meeting of the Board in which the contract or arrangement is discussed and shall not participate in such meeting:
Now my question is that ABC Pvt. Ltd. is a Company in which "D" is a Director and another there is Proprietorship Firm i.e. M/s XYZ runned by Mrs. "R" who is the wife of Mr "D".
Now Company ABC Pvt. Ltd. did a Transaction with Proprietorship Firm is M/s XYZ.
Now it is clear case of Related Party Transaction because Mrs. R is a wife of Mr. D.
Now my question is
(a) whether Mr. D who is the Director of ABC Pvt. Ltd is an Interested Director due to this transaction? if yes how and why?
(b) Whether any interest of Mr. D in this Transaction.? if yes how and why?
please reply in detail with references.
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