DISCUSS whether there were any restrictions for EcoBright Systems to sell its machinery to Mr. Arjun in exchange of a vehicle and ANALYSE the legal…

Contents of notice issued for approval of resolution: The notice for approval of the resolution in general meeting issued by the company or holding company shall include the particulars of the arrangement. It shall also include the value of the assets involved in such arrangement duly calculated by a registered valuer. In the given instance, EcoBright Systems entered into a non-cash transaction with its managing director, Mr. Arjun by selling its machinery in exchange of a vehicle. For doing so, EcoBright Systems would have taken prior approval for such arrangement vide a resolution in its general meeting and also as Mr. Arjun is a Managing director of its holding company, LumaLight Ltd., as well, prior approval would also have been taken by passing a resolution in the general meeting of LumaLight Ltd. Further, the contents of notice of aforesaid meetings would have included the particulars of such arrangement between EcoBright Systems and Mr. Arjun and the value of the assets involved in such arrangement duly calculated by a registered valuer.