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Agreement Made Orally

This query is : Resolved 
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(Querist)
10 July 2007 Sir,

What Are The Likely Risk Implications when a Limited Company Transfers Assets of over Rs.1 Crore only on the basis oral
agreement between the two parties.
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Shashi Mohan Jha

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Shashi Mohan Jha (Expert)
11 July 2007 Oral agreements can not be challenged in a court of law.
Board would generally not permit director to "execute transactions specially material and capital nature on a oral basis.

Auditor may also qualify the report in absence of any written agreement/contract
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Sanjeev Kumar Varshney

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Sanjeev Kumar Varshney (Expert)
12 July 2007 What do you mena by transfer ? Is it sale ? If yes, then consider the following :
Are the party involved are related parties ?
Whether Rs 1 Crore is a material amount keeping in view the Asset base of the company ?
Such transaction should not be execute without proper documentation keeping in view the requirement of CARo and Corporate Governance.
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