Further query regarding section 297
This query is : Resolved
02 September 2011
There are 2 companies
1)Co. A public limited co having paid up more than Rs. 1 crore
2)Co. B a private limited co but wholly owned subsidiary of Co. A
u/s 3(1)(iv), a private limited co which is subsidiary of a public limited co. will be taken as a public limited co.
Hence if Co.A and Co.B want to enter into an agreement will it be a contract between 2 public company which is exempted u/s 297(2)
And if subsiquently Co.B(WOS of CO.A)enter into an agreement with a private limited company, will it attract section 297 as contract between a public ltd and private limited.
PLEASE ADVICE
1)Co. A public limited co having paid up more than Rs. 1 crore
2)Co. B a private limited co but wholly owned subsidiary of Co. A
u/s 3(1)(iv), a private limited co which is subsidiary of a public limited co. will be taken as a public limited co.
Hence if Co.A and Co.B want to enter into an agreement will it be a contract between 2 public company which is exempted u/s 297(2)
And if subsiquently Co.B(WOS of CO.A)enter into an agreement with a private limited company, will it attract section 297 as contract between a public ltd and private limited.
PLEASE ADVICE
03 September 2011
Answer for both the queries are 'yes'
As for the second query the result will depend upon the type of transaction, if it for sale/purchase of goods or provision of serice and there are common directors or Director of B is the member of the Pvt Co. then 297 will attract
CS Saju Philip
sajuphilipcs@yahoo.com
As for the second query the result will depend upon the type of transaction, if it for sale/purchase of goods or provision of serice and there are common directors or Director of B is the member of the Pvt Co. then 297 will attract
CS Saju Philip
sajuphilipcs@yahoo.com
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