neha (CS) (292 Points)
03 June 2011had a query regarding applicability of section 297 for pvt co having paid up share capital of more than rs.1 cr (govt approval required) for contracts entered by the co.
eg: A is a director in both the private cos. B & C. so any contract entered by B & C requires government approval since the paid up cap exceeds 1 cr. Also B & C are joint ventures. pls advice.
Arvind Sharma
(ACA)
(1432 Points)
Replied 03 June 2011
Ya.., In that case, ie contract between A & B will require Board Resolution in Board Meeting (ie resolution by circulation will not be suffic) and as you said, CG approval if paid up share capital of the Compnay is Rs. 1 Cr or more...
However, this Sec is not applicable in case of Loan TO Public Company.....
CAclubindia
