297 & 299

S. Satheesh Kumar (Assistant Company Secretary)   (84 Points)

12 March 2010  

Dear All,

An Unlisted Public Company be entered into contract with Private limited company under section 297. The quorum of the Board Meeting is not sufficient to pass the resolutions for approving the said contract due to all directors are interested in this proposal under section 299. Therefore, the company is decided to get the approval from its members by general meeting, based on members approval, the Company decided to make an application to Central Government. Whether this procedure is valid or not.