Section 297 of companies act

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

10 February 2012 Sir,

Can anyone clarify me whether section 297 of the companies act is applicable to transaction between public company and sole proprietorship which is carried on by the director of the company?

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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10 February 2012 Yes applicable.

https://www.caclubindia.com/forum/an-analysis-of-section-297-of-the-companies-act-1956-187681.asp

Check out above link for details.

Jiten Gupta

Jiten Gupta (Expert)
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11 February 2012 Agree with expert, it is applicable..

Doing contract with Sole Proprietorship means doing contract with owner of such proprietorship who in your case is Director.

And where a company enters into contract with Director, 297 comes into picture..

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