neha (CS) (292 Points)
10 August 2011HI ALL
one clarification if the paid up capital of one co. is more than 1 crore and other it is less then 1 crore. whether section 297 applicable if they have a common director and both are private ltd. These are JV's.
please clarify.
thanks in advance.
AMIT MISHRA
(Legal Professional)
(393 Points)
Replied 10 August 2011
Hi Neha,
Section 297 is applicable in this case as the companies have a common director and are Private Limited Companies. The company with paid-up capital of more than Rs. 1 cr. requires permission of Regional Director(a costly affair) while in case of Company with lesser paid-up capital aresolution in this regard. This Section does not include real estate business contract agreements.
Thanks & Regards
Amit Mishra
BSamrish & Co.
Harihasan Karthik
(Assistant Company Secretary)
(29 Points)
Replied 10 August 2011
Hi,
I agree with Mr. Amit.
sakshi
(CS)
(261 Points)
Replied 11 August 2011
And what if both the Private Companies having common directors have paid up capital more tha Rs. 1 crore, then in that case who shall seek the approval for entering itno contract.?
Kindly clarfiy my point.
CS Shraddha G. Kulkarni
(Practising Company Secretary)
(38 Points)
Replied 19 August 2011
In such case both the companies will require central government's PRIOR approval.
Harihasan Karthik
(Assistant Company Secretary)
(29 Points)
Replied 19 August 2011
Dear Sakshi,
As in your case both the companies are private having paidup capital more than Rs. 1 Crore.So, Its enough to get central governments approval by any one of such private companys.
Regards,
Harihasan Karthik
CS Shraddha G. Kulkarni
(Practising Company Secretary)
(38 Points)
Replied 20 August 2011
Mr. Karthik I disagree with your opinion.
As both the companies are having transaction with each other (one will be purchasing and the other will be selling) both of them are required to get the respective transaction approved. thus both will require the Central Government's prior approval.
CAclubindia
