Inter company business transactions
This query is : Resolved
02 December 2011
Sir, I Would Like to know whether there is any restriction on inter corporate business transactions such as sale/ purchase between related parties companies.
I know requirements for inter-corporate debts and investments. I was only interested in inter-corporate normal business transactions between related parties of any amount.
Regards
I know requirements for inter-corporate debts and investments. I was only interested in inter-corporate normal business transactions between related parties of any amount.
Regards
02 December 2011
There are some restrictions so that insider or limited persons cannot take advantage of their position.
First of all, director have to issue a general notice to the company that he should be considered interested in the following body corporates or firms if the company enter into any transaction with those bodies corporate.
Secondly, if the transaction falls under section 297 there are strict compliances.
First of all, director have to issue a general notice to the company that he should be considered interested in the following body corporates or firms if the company enter into any transaction with those bodies corporate.
Secondly, if the transaction falls under section 297 there are strict compliances.
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02 December 2011
Yaa Thanks Sir,
Well the transaction would not fall u/s 297, since the transactions are between two Public ltd companies. So, I think only disclosure of interest by directors is enough...
regards
Well the transaction would not fall u/s 297, since the transactions are between two Public ltd companies. So, I think only disclosure of interest by directors is enough...
regards
02 December 2011
Section 297 is applicable to 2 public companies.
It is not applicable on the transactions between:
Public and Private
Private and Private
It is not applicable on the transactions between:
Public and Private
Private and Private
02 December 2011
Sir, I as I Reading I think Sec 297 shall apply only if the contract is entered between the company and any of the following persons
1. A Director
2. A Relative of any director
3. A Firm in which such director or relative is partner
4. any other partner in such a firm
5. A Private Company of which director is a member or director.
That clearly means a contract between two Public Companies does not fall u/s 297..
Sir,
Kindly Clear the position.
Regards.
1. A Director
2. A Relative of any director
3. A Firm in which such director or relative is partner
4. any other partner in such a firm
5. A Private Company of which director is a member or director.
That clearly means a contract between two Public Companies does not fall u/s 297..
Sir,
Kindly Clear the position.
Regards.
02 December 2011
Here i beg to differ from Mr. Ankur Section 297 does not apply to transactions between two public Companies.
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02 December 2011
MS Charu .. I agree with you... thanks..
I think now the query is resolved.
I think now the query is resolved.
02 December 2011
Oh! Sorry Guys...
I wrote just opposite position.
Public and Private
Private and Private
The above companies need to comply section 297 however, on the transaction between 2 public companies Section 297 does not apply.
I wrote just opposite position.
Public and Private
Private and Private
The above companies need to comply section 297 however, on the transaction between 2 public companies Section 297 does not apply.
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