Further query regarding section 297

This query is : Resolved

CS Usha (Querist)
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02 September 2011 There are 2 companies
1)Co. A public limited co having paid up more than Rs. 1 crore
2)Co. B a private limited co but wholly owned subsidiary of Co. A

u/s 3(1)(iv), a private limited co which is subsidiary of a public limited co. will be taken as a public limited co.

Hence if Co.A and Co.B want to enter into an agreement will it be a contract between 2 public company which is exempted u/s 297(2)

And if subsiquently Co.B(WOS of CO.A)enter into an agreement with a private limited company, will it attract section 297 as contract between a public ltd and private limited.

PLEASE ADVICE

CS SAJU PHILIP MANALEL

CS SAJU PHILIP MANALEL (Expert)
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03 September 2011 Answer for both the queries are 'yes'
As for the second query the result will depend upon the type of transaction, if it for sale/purchase of goods or provision of serice and there are common directors or Director of B is the member of the Pvt Co. then 297 will attract
CS Saju Philip
sajuphilipcs@yahoo.com

CS Usha

CS Usha (Querist)
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03 September 2011 Thanks a lot for helping..

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