companies act

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gulamabbas (Querist)
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03 December 2009 A is a pvt ltd company having B a subsidiary pvt ltd co. Paid up capital of A IS less than Rs 1 Crore and of B is more than Rs 1 crore

A wants to sell goods to B at fair market value.Goods being sold are regular business of A. Payment will be by chq in 60 days

Pls adv whether Bneeds to take approval of Central Govt as per section 297 or it is exempted

Ankur Garg

Ankur Garg (Expert)
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03 December 2009 Hi,

As per the info provided by you exemption conditions mentioned in section 297(2)(a) are fulfilled. So you are outside the preview of section 297(1)(a) and consequently outside the section 297(1).

To conclude section 297 is not applicable to your case and no need to take CG approval.

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Regards

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