Section 297

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

12 February 2013 dear Sir
Our company is a listed company which has many wholly owned subsidiaries. Please advice as to whether sec 297 of the companies act 1956 is applicable to Wholly owned subsidaries where one of the director is a director in other company also.

Thanks In advance

amar panigrahy

amar panigrahy (Expert)
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12 February 2013 Section 297 applies to all companies, public as well as private. However, it does not apply to the contracts where both the parties to the contract are public companies. The section would apply where one of the two companies (being parties to the contract) is a private company and the other is a public company, but in such a case, it will have to be complied with by the public company only.