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Shahzain Machineries limited (SML) is a public limited company, having a paid-up share capital of Rs. 50 million. SML proposes to enter into contracts with the following parties for the supply of certain components for a period of five years with effect from January 1, 2019.
1. Falcon Forgings Private limited, where Mr. Shehzad, a director of SML, is interested as director and member. (05)
2. Superior Casting Limited, where Ms. Kiran Khan, a director of SML, is interested as a member holding 25% of paid-up capital. (05)
Required:
Considering the above scenario, state briefly the legal requirements to be complied with under section 205 and 207 of Companies Act, 2017, to give effect to above proposal.
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