section 297 of the companies Act, 1956

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sanjay srivastava (Querist)
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15 September 2010 Dear Friends Please solve the query.

1. whether section 297 of the companies act applies when one company is public ltd. and other is a pvt. company of the the first ones subsidary i.e. public ltd. company;s subsidary ?

2. if a pvt companiy becomes subsidary of Public company is there any need to increse members upto 7 and directors upto 3?
Thanking you in advance

Ajay Mishra

Ajay Mishra (Expert)
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16 September 2010 Dear Friend

In case your private company becomes subsidiary of public company, in this case there is no need to comply the minimum requirement of members and directors as applicable to public company.

Regards
CS Ajay Mishra

Ajay Mishra

Ajay Mishra (Expert)
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16 September 2010
Dear Friend,

In following case the provisions of section297 will not apply:

1. Giving or taking loans.
2.Contract in respect of immovable property (as it is not 'good' ).{Letter No. 9/4190-CL-X dated 27.03.1990}.
3.Contract between two public Companies.
4.Contract of employment of director or managing or whole time director.[ Circuler No.8/11/75-CL-V dated 27.03.1975]
5.Contract for employment of relative of director.
6.Contract entered into by the company with the dealer on principle to principle basis. [Circuler No. FM 8/297/56-PR dated 02-08-1956]
7. Professional services of the nature given by firms of solicitors and advocates, etc.[circuler No. 8/11/75-CL-V dated 05.06.1975]
8.hiring of office premises on rent as the transaction is in immovable property. [Department Clarification dated 10-09-1990]

Regards
CS Ajay Mishra

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