Applicability of section 297 of companies act, 1956

This query is : Resolved

archana shah (Querist)
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12 September 2011 If A Ltd. (holding Co.) comes into contract with B Pvt. Ltd. (Subsidiary of A Ltd.)whether A Ltd. has to follow the provisions of Section 297 of the Act.

Saroja

Saroja (Expert)
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12 September 2011 Holding Company to Subsidiary , sec 297 will applicable.

CS Suraj Arora

CS Suraj Arora (Expert)
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17 September 2011 Dear Archana

The Answer of your query is No.the provisions of section 297 will not apply.

As B ltd is a subsidiary of A ltd which is a public ltd company.Now as per the provisions of section 3(1)(iv)(c) of the Companies Act 1956 a private ltd which is subsi of public ltd is a public company.

then as on two ppublic ltd companies provisions of setion 297 is not applicable.

I hope your query is solved.