Section 297

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

07 January 2011 I have query regarding applicability of section 297 in case of transaction between a public ltd and a pvt. ltd. co.

i) X public ltd. and Y Pvt. ltd company are JV partners and the share of X pub. ltd. is 49%.
ii) There are two nominee directors in Y pvt. ltd co. of whom one is the director in X pub. ltd. co.
iii) X ltd providing services to Y Pvt. ltd on daily basis.

Jayashree S Iyer

Jayashree S Iyer (Expert)
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07 January 2011 Section 297 is applicable to X Public Ltd. Board sanction is required. If the paid up capital is >1 crore, X Public Ltd is required to take CG approval as well.

However Section 297 does not apply to Y Pvt. Ltd.

Querist : Anonymous

Querist : Anonymous (Querist)

07 January 2011 Thanks for the response.

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