Section 300 CAMA 2020

Section 300 Companies and Allied Matters Act is about Provisions supplementary to sections 298 to 299. It is under Chapter 11 (Directors) of the Act.

(1) Where, in proceedings for the recovery of any payment which has been received by any person in trust by virtue of section 298 and 299 (1)and (3) of this Act, it is shown that—

(a) the payment was made in pursuance of any arrangement entered into as part of the agreement for the transfer in question, or within one year but before two years after that agreement or the offer leading thereto ; and

(2) If in connection with any such transfer mentioned in sections 298and 299 of this Act—

(a) the price to be paid for any share held by a director of the company whose office is to be abolished or who is to retire from office in the company held by him is in excess of the price obtainable at the time by other holders of the like shares ; or

(b) any valuable consideration is given to any such director, the excess or the money value of the consideration, as the case may be, shall, for the purposes of that section, be deemed to have been a payment made to him by way of compensation for loss of office, or as consideration for or inconnection with his retirement from office.

(3) References in sections 297-299 of this Act to payments made to any director of a company by way of compensation for loss of office or as consideration for or in connection with his retirement from office does not include any bona fide payment by way of damages for breach of contract orby way of pension in respect of past services and for the purposes of this subsection, “pension” includes any superannuation allowance, superannuation gratuity or similar payment.

(4) Nothing in section 298 or 299 of this Act shall be taken to prejudice the operation of any rule of law requiring disclosure to be made with respect to any such payments as are mentioned there, or with respect to any other like payments made, or to be made, to the directors of a company.