Sec 297

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Priya Sharma (Querist)
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25 August 2009 What is the procedure for filing of form 24A under sec 297(Related Party Transactions), where the paid up capital of he Company is RS. 1 crore??

Is it necessary to file form 23 also??
While uploading form 24A at MCA portal, does it gets submitted with ROC or RD??

Please advise urgently.

Thanks &Regards

Priya Sharma

Ankur Garg

Ankur Garg (Expert)
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25 August 2009 Hi Priya,

Delegation of power to Regional Director

The power under the said proviso is delegated to the Regional Directors at Mumbai, Kolkata, Kanpur and Chennai for providing approval by the Offices of Regional Directors located in their Regions.

No need to file form 23. Only if u pass special resolution form 23 is required.

Ankur Garg

Ankur Garg (Expert)
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25 August 2009 Secretarial checklist

Check whether exempting provisions contained in section 297(2) of the Companies Act, 1956 were not applicable? If not, check that:â€”

1. Consent of the Board of directors was obtained by a resolution passed at a meeting for entering into contracts in which directors were interested.

2. Prior approval of the Central Government (Regional Director) has been obtained, if the paid up share capital of the company is not less than Rs. One Crore.

3. The particulars of the contract were entered in the Register of contracts, in accordance with the provisions of section 301.

4. The requisite resolutions were recorded in the minutes of Board meetings.

Enclosures required to be submitted with the application

E-Form 24A has to be submitted with following enclosures:

(1) Copy of agreement containing particulars of contract.

(2) Copy of board resolution and proceedings of meeting.

(3) Detailed application should be filed as an optional attachment containing details relating to the following;

(a) Whether the terms of the contract conform to the prevailing market rates.
(b) Whether the company has entered into any contract with any other person in respect of sale, purchase or supply of the same kind of goods, materials or services and whether the terms of such contract are similar to the terms of the proposed contract(s). Reasons for variation in rates, if any should be indicated

(4) Certified copy of the latest amended Memorandum and Articles of Association;

(5) Certified copy of the audited Balance Sheet and Profit & Loss Account for a last three years;

(6) Certified copy of the Minutes of the General Meeting at which the proposal was approved, if in case of the non availability of the quorum of disinterested director in a public company.

Regards

Priya Sharma

Priya Sharma (Querist)
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25 August 2009 Thank You ver much Sir.
But I went through the help kit of form 24A, it emphasises on annexing
the
(1)Copy of agreement containing particulars of contract.

(2) Copy of board resolution and proceedings of meeting.

(3) Detailed application should be filed as an optional attachment containing details relating to the following;

(a) Whether the terms of the contract conform to the prevailing market rates.
(b) Whether the company has entered into any contract with any other person in respect of sale, purchase or supply of the same kind of goods, materials or services and whether the terms of such contract are similar to the terms of the proposed contract(s). Reasons for variation in rates, if any should be indicated

But it is not asking for the
(4) Certified copy of the latest amended Memorandum and Articles of Association;

(5) Certified copy of the audited Balance Sheet and Profit & Loss Account for a last three years;

Should I still attach it to the form??

Rgds

Priya Sharma

Ankur Garg

Ankur Garg (Expert)
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25 August 2009 Answered