Section 297 of Companies Act, 1956

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

10 January 2011 If one public company trasact with pvt. ltd. co. which is subsidiary of public company, then section 297 is applicable or not.

udit sharma

udit sharma (Expert)
Follow

10 January 2011 Yes...Section 297 will be applicable in case of a transaction between a Public Company and a Private Company in which a Director of the Company is a Director or member.

Regards

CS Udit Sharma

Jayashree S Iyer

Jayashree S Iyer (Expert)
Follow

11 January 2011 Section 297 is not applicable in case of transactions between a holding public company and its subsidiary as the private company which is a subsidiary of a public company will also be a public company as per privisions of Section 3(i)(iv).

Consequently the transactions will be between two public companies falling outside the purview of Section 297.

Upgrade to CAclubindia Pro. Subscribe Now!