Appointment of sole-selling agents

LAXMIKANT JAIPURKAR (Practicing Company Secretary/Tax Consultant)   (403 Points)

10 March 2009  

What is the procedure for sole-selling agents u/s 294 of the Companies Act ? Can a Indian company appoint a sole-selling agents in foreign country ? The approval of Central Government is available for the foreign entitry ?

Following things are clear to me, what about the others ?

-The sole-selling agent to be appointed for maximum period of 5 years.

-Sole-selling agent should have the appropriate experience.

-Application in Form-I alongwith requisite fee to be made through e-filing.

-Application will be sent to MCA, New Delhi for its approval.

-The sole-selling agency will be exclusive for the particular area.

- MoA/AoA of the company should have the provision for appointment of sole-selling agent.

- The following documents are required to be attached alongwith the application :

    a) sole-selling agreement on stamp paper.

    b) previous approval for sole-selling agreement.

   c)  breif descripttion of the agent to be appointed.

  d)  Last 3 years balance sheet of the sole-selling agent and the appointee company.

  d) Copy of Special resolution passed in general meeting.