Dear All,
I have a query regarding section 297 of the Companies Act, 1956. As per the said section, where the paid up capital of the Company is Rs. 1.00 Crore or above, in such a case prior approval of CG is required.
Query:
A pvt ltd having paid up capital of Rs. 1.00 lac entered into an 10 years service agreement on 01st June, 2011 with B pvt ltd having paid up capital of Rs. 1.2 Crores. In this case B pvt ltd has to apply for CG for approval and there is no such requirement of A pvt ltd
On 01st August, 2012, the paid up capital of A pvt ltd. raised to Rs. 1.00 Crore. Wether A pvt ltd is required to take CG approval for the contract entered before its capital raised to Rs. 1.00 Crores. If yes, please qoute the provisions or where I can find any reference.
CAclubindia
