Applicability of section 297 of Companies Act, 1956
This query is : Resolved
SUHAS D. PATIL
(Querist)
21 November 2009
A Ltd. is a public company having paid up capital of less than Rs.1 Cr. Basically formed for rendering professional services like internal audits, etc. If B Pvt Ltd. having paid up capital of more than Rs.1 Cr. appoints A Ltd. as an internal auditors of the company, whether provisions of section 297 gets attracted (in relation to prior approval of Central Government)on either side, given both the companies have 1 common director.
Thanks
Suhas Patil
Pune
Thanks
Suhas Patil
Pune
CA Ravi Sisodia
(Expert)
21 November 2009
SECATION 297 APPLIES ALL THE COMPANIES(PUBLIC & PVT.). I THINK SEC.297 NOT APPLICABLE IN THIS CASE, BECOUSE IF SECOUND COMPANY(here A LTD.) IS PUBLIC CO. THEN SEC.297 PROVISION NOT APPLIES.
CA Ravi Sisodia
(Expert)
21 November 2009
B LTD. HAVE PAID UP SHARE CAPITAL MORE THEN ONE CRORE, THEIR IS NO REQUIREMENT/NEED FOR APPROVAL OF CENTRAL GOVT.
Jagruti (CS)
(Expert)
21 November 2009
Just to add that if transaction is between two public company than Sec 297 is not applicable
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