ACS Anjali Jain (SERVICE - CS) (472 Points)
03 June 2015Does share application money paid is the type of transaction which will attract provisions of sec 297?
As per my interpretation of sec 297, share application money paid does not come in the ambit of any of the transaction specified in the section so it will not attract the provisions of this section.
Please tell me whether my interpretation is right or wrong.
P C Agrawal
(Registered independent director Past Chairman of Aurangabad Chapter of ICSI Practicing Company Secretary at Aurangabad)
(8229 Points)
Replied 03 June 2015
Section 297 of CA 1956 is no more in force from 1.4.204.
ACS Anjali Jain
(SERVICE - CS)
(472 Points)
Replied 03 June 2015
yes i know that sir. but this query is related to a transaction taken place in the year 2010-11
P C Agrawal
(Registered independent director Past Chairman of Aurangabad Chapter of ICSI Practicing Company Secretary at Aurangabad)
(8229 Points)
Replied 03 June 2015
No it was not covered u/s 297. Though shares are 'goods', yet they come into existence only on allotment. Hence share application money was out of ambit of Sec.297.
ACS Anjali Jain
(SERVICE - CS)
(472 Points)
Replied 03 June 2015
ok thank you sir for solving the query.
CAclubindia
