Section 297

This query is : Resolved

Chandranil (Querist)
Follow

13 July 2010 Incase where there are two companies co 1 pub co having paid up capital less than Rs 1 crore and Co 2 Pvt Company having paid up capital more than 1 crore

now this companies enter in to transcation in which directors are interested covered under sec 297 of the Act, kindly let me know which company pub or pvt has to take the approval of Central Govt ( RD).

please support answer with reasoining

Vishal Dang

Vishal Dang (Expert)
Follow

13 July 2010 Dear Chandranil

in the given case only private company is required to obtain the approval of C. G. However the public company is require to pass a resolution in the Board Meeting because as per section 297 the Company having the paid capital of Rs. one Cr. or more requires the CG approval.