12 December 2011
Kindly Answer the following Which the following transactions are valid or not. With out Prior Approval. 1. Public Company with Public Company (One Director is the Director of the company) 2. Public Company with Private Limited Company (One Director is the Director of the company) 3. Public Company with Partnership firm(One Director is the Partner) 4. Public Company with Proprietor.(One Director is the Owner of this concern)
In the Above, for which category Prior Approval is necessary.
15 December 2011
Prior approval is required in 2,3 & 4 cases, provided the paid up share capital of the company is Rs.1 crores or above. Basically, Section 297 is applicable to all the companies, public and private, except on the transactions between two pubic companies and also to the transaction of loan made by the director to the company, since it is not a sale or purchase of goods or contract to render to render services.
CAclubindia
