30 May 2012
Please let me know the penalty in case of non compliance of Section 297 in this particular case as mentioned below if any:
X,Y & Z are director in XYZ Ltd as well as in ABC ltd.
(1)If XYZ Ltd had purchased some goods from ABC Ltd on credit on regular basis & make payment through cash & cheque at the prevalling market rates.
(2)If XYZ Ltd had purchased some goods from ABC Ltd on credit on regular basis & make payment through cash & cheque at the prevalling market prices. The amount of contract is of Rs. 3 crores approx.
Please refer some cases for ready reference Waiting for your early response.
30 May 2012
According to me compliance of section 297 is not required for transactions between two public companies. Please read sub-section 3 of section 297, where "public company" is not mentioned.
CAclubindia
