PRAVEEN K BHARTI (COMPANY SECRETARY) (23 Points)
07 February 2008Hi
Whether section 297 of the Companies Act, 1956 is applicable on the transactions of sale/ purchase with a Company based outside india in which some of the director of india company is common.
Is there any case law on this.
S.Srinivasaraghavan
(Chief Financial Officer and Co)
(11318 Points)
Replied 07 February 2008
Prakash Shah
(Practise)
(21 Points)
Replied 15 April 2008
X Limited wants to enter into partnership with Mr.Y in the profit sharing ratio of 9:1 under the name of X Enterprises
a) Can X Limited enter into a partnership with Mr.Y ?
b) Does X Limited require to take a central government's approval for making transaction of purchase of goods or services from X Enterprises(Partnership Firm) u/s 297 of the companies act, assuming that X Limited has paid up share capital of more than 1 crore and Mr. Y is neither a director, employee or relative of the director or employee ?
CA NP Mathi Lingan
(Practising Chartered Accountant)
(98 Points)
Replied 19 April 2008
Sec 297 is not applicable to foreign companies because 297 is applicable only to a contract with a
- director of the company
- his relative
- a firm in which such a director or relative is a partner or any partner in that firm
- a private company of which the director is a member or director
and private company means a company defined in Sec 3.
- Mathi Dada
smita mohite
(service )
(0 Points)
Replied 15 July 2008
| Originally posted by :PRAVEEN K BHARTI | ||
| " |
Hi 2) if there is one company is public limited and other is private company ,then sec.297 applies or not |
" |
smita mohite
(service )
(0 Points)
Replied 15 July 2008
1) Whether sec.297 applies if both the companies are private limited
S.Srinivasaraghavan
(Chief Financial Officer and Co)
(11318 Points)
Replied 16 July 2008
| Originally posted by :Guest | ||
| " | 1) Whether sec.297 applies if both the companies are private limited | " |
Applicable.
| Originally posted by :Guest | ||
| " | Originally posted by :PRAVEEN K BHARTI " Hi 1) Whether section 297 of the Companies Act, 1956 is applicable on the transactions of service provided ,brokerage ,reimbursement of exp. with a directors . 2) if there is one company is public limited and other is private company ,then sec.297 applies or not ans: 1) yes section 297 is aplicable as only those contracts where there is exchange of goods are outside the scope of section 297 whereas all the contracts of service are covered by this section... 2) yes this section applies, also that this is to be complied by public company only........this section is inapplicable where the transaction is between public company......... |
" |
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