Sec. 297

This query is : Resolved

Vignesh (Querist)
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24 March 2010 Dear Sir/Madam,

Is previous approval of Central Govt. required, if the transaction is at prevailing market prices and for cash? (Transaction between a Company (PU capital 2 Crs.) and its Director)

Regards,

Vignesh J

Ankur Garg

Ankur Garg (Expert)
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24 March 2010 Hi,

I think proviso to section 297(1) is still applicable and you have to obtain previous approval of central govt. in case paid up capital is more than 1 crore.

Views of other experts solicited.

Regards