Under this senario, is the Section 297 applicable: 1) Company A - Paid up capital 110 lakhs 2) Company B - Paid up Capital 1 lakhs The Directors / Share holders / line of business are same. Can any assets / goods be transfered from Company A to Company B ? (The value of the assets is approx 5 lacs and the goods in trade is Rs.1.5 lakhs) I am of the feeling that above transcation cannot take place between both the companies without permission of Central Government. Am I correct?
Both Company A & Company B are private limited companies and having 2 shareholders only.
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