Whether provisions of the section extend to contracts with public as well as private companies in which directors are interested - Companies Law - No. 8/299/56‑PR,

Circular : No. 8/299/56 ‑ PR, dated 15 ‑ 6 ‑ 1956. Subject:- Whether provisions of the section extend to contracts with public as well as private companies in which directors are interested There is no ambiguity regarding the scope of section 299. This section is wider in scope, as it refers to the interest of a director in any way directly or indirectly , then section 297, which refers to certain direct contracts only. In the view of the Central Government, therefore, the provisions of section 299 also extend to contracts with public as well as private companies in which directors are interested. In view of the above, the expression body corporate occurring in clause (a) of sub‑section (3) of section 299, is in conformity with the definition given to it in sub‑section (7) of section 2 and has not been used in any limited sense so as to apply only to private companies.