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Applicability of section 297 for sales to subsidiaries co

MCA 908 views 1 replies

basant kumar sahoo

32 Points Joined February 2012

Dear Freinds,

Our Company is closely held limited company have been sales its final products to its subsidiary companies at USA & Singapore. my quostion is whether the sales (export made) made by the company to its subsidiaries companies at outside India attact the provisions of section 297 of the Companies Act,1956. Please comments .

with Regards,

CS B.K.SAHOO

Replies (1)

prakash

Company Secretary

1352 Points Joined January 2012

Contracts between two public companies are outside the perview of section 297, anyway your company is holding , then as per section 3(1) (iv) (c) of the Companies Act, the subsidiary company treated as a deemed public company and consequently section 297 will not apply.