Section 297

This query is : Resolved

Chandranil (Querist)
Follow

01 July 2010 Dear Experts,

suppose there are two pvt Companies Co 1 having Paid up capital Rs1.5 Cr & Co 2 having paid up capital 2 Cr now for sec 297 Central Govt approval does only one company having greater paid up capital is required to make application ie co 2 or

both the companies are required to make separate application for the Central govt approval

Please provide proper reasons for your answer

Vishal Dang

Vishal Dang (Expert)
Follow

01 July 2010 Dear

section 297 requires that if the paid up capital of the company is 1 crore or more and it has entered in to transaction with the persons enumerated in section 297 than that company requires the approval of Central Government subject to some exemption laid in section itself.

in your case both the Company would require approval of Central Government because provisions of the section are applicable on both the companies equally.