Whether sale or purchase of materials by a director or his relative, associate, etc., to or from a company in which he is a director attracts sub‑section (1) - Companies Law - Letter : No. 8/38(314)/61‑PR,

Letter : No. 8/38(314)/61 ‑ PR, dated 10 ‑ 5 ‑ 1961. Subject:- Whether sale or purchase of materials by a director or his relative, associate, etc., to or from a company in which he is a director attracts sub ‑ section (1) The provisions of section 314(1) do not apply to the sale or purchase of material by a company to or from its director or his, relative, a firm in which such director or relative is a partner, any other partner in such a firm, or a private company of which the director is a member or director. It would be enough in such cases if the consent of the board of directors of the company is obtained as laid down in section 297(1).