CA Final
385 Points
Joined April 2010
As per sec 297, when the company enters into a contract in which some of the directors interested, then consent of the Board and CG is required, if the paid up capital of the public co is Rs. 1 crore or more, but as per sec 297 (2) there are certain exemptions like the purchase or sale is for cash at prevailing market prices and if the value of the transactions not exceed Rs. 5000 in aggregate in any year.
Whether the above said exemptions apply even if the companies paid up capital is Rs 1 crore or more?