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Section 297

raspreet kaur (job) (55 Points)

09 June 2010

Whether Section 297 is applicable to contracts entered into between two public limited companies??

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Ankur Garg (Company Secretary and Compliance Officer) (114773 Points)
Replied 09 June 2010

Section 297 is not applicable to contracts entered into between two public limited companies.

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Ankur Garg (Company Secretary and Compliance Officer) (114773 Points)
Replied 09 June 2010

Situations and conditions where section 297 is not applicable:

1. Contracts between two public limited companies.

2. Contracts between a company registered under the Companies Act and a company incorporated outside India.

3. Contract between company and a private company of which the relative of a director is a member or a director.

4. Contracts for sale, purchase or lease of immovable property.

5. Contract for employment of a director as managing director or whole-time director.

6. Transaction of a loan made to a director by the company, since it is not a sale or purchase of goods or a contract to render services.

7. The Central Government's approval under the proviso is not applicable to a Government company in respect of contracts with another Government company.

8. Professional services rendered by solicitors/advocates or by firms of solicitors and advocates.

9. Contracts entered into by the company with a dealer on a 'principal to principal' basis, provided the dealer does not acquire the same on agency basis.

Best Regards

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