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Section 297 application

366 views 1 replies

Still Learning

234 Points Joined December 2013

Hello Professional,

We are applying to the Central Government under section 297 for renewal of its approval.Our previous Central Government Approval expires on 31st March 2014. The entire process of renewal will take at least 2 months approximately. If this happens, we might not get approval before 31st March 2014.Does this mean that there cannot be any transaction between the two companies for which we are applying for one month? Or can we continue with the activities?

Thanks in advance.

Replies (1)

P C Agrawal

Registered independent director Past Ch

8229 Points Joined March 2007

Section 297 requires previous approval of CG and hence subsequent approval will not serve the purpose. Incidentally, it is likely that Sec.188 of CA 2013 (corresponding to Sec.297 of CA 1956) may get notified from 1.4.2014 which requires previous approval of members by special resolution and approval of CG will be dispensed with. It will be better to wait for notification which may be issued very soon.