01 September 2011
In my case there are two companies, Co. A a public co. having paid up capital of more than Rs. 1 crore Co. b a pvt ltd co. both A & b have common director and shareholders and Co.A wants to enter into an agreement with Co.b for giving its manufacturing work on outsource basis.
Now do Co. A need to get Central Govt prior approval under section 297 of the companies act 1956 before signing such agreement.
02 September 2011
Dear Usha in your case Co A need to get Central govt permission for getting into contract with co b. Where th contract is in between public ltd & pvt ltd thn only public ltd needs to get central govt permission.
Firt he must file form 24AA then he can be the part of the board to pass resolution for the outsourcing agreement. In beginning of every financial year every Director needs to file form 24AA to the company where he is a Director.
CAclubindia
