Neeta (Finance) (345 Points)
20 January 2010Hello members
A private co makes allotment of equity shares to its promoter and foreign co against the technical services. please tell me does it attract section 297. there are common directors in the private co and foreign company.
whats the difference if this private co was a public co.?? what is procedure to be followed for the same ???
regards
neeta
CourseCart.in
(Mentor at SHAYVIDZ Academy)
(3756 Points)
Replied 20 January 2010
Dear Neeta,
In my opinion, sec 297 will not be applicable in the above case..
Sec297 applicable on in case of SPECIFIED CONTRACT between SPECIFIED PERSOS..
Sec297 says : Specified contract between -
Party 1 : Public company or private company
Party 2 : (i) Director (ii) Relative of Director (iii) Firm in which director or relative of director is partner (iv) any other partner in such firm (v) A PVT COMPANY of which the director is a member or director.
Foreign company is not covered in the list of SPECIFIED PERSON for the purpose of Sec 297..
So i think Sec 297 will not be applicable in ur case..
Opinion of other members of CACLUB also be considered..
Adarsh
Aman Jain
(Company Secretary in Practice)
(165 Points)
Replied 20 January 2010
Dear Neeta,
Adarsh is right . Sec. 297 is not applicable in your case.
Ajay Mishra
(Company Secretary)
(74342 Points)
Replied 23 January 2010
CourseCart.in
(Mentor at SHAYVIDZ Academy)
(3756 Points)
Replied 25 January 2010
Ruma Ganguly
(Asst.Company Secretary(trainee))
(21 Points)
Replied 23 July 2010
Hello Members,
Can anybody send me a specimen board resolution as required before entering into any contract U/S 297 of the Companies Act,1956?
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