Applicability of section 297

Dear All

I am of the opinion in any services agreement between a private company and a public company, where the public company is providing services and is receiving payment of the same from a private company, which have a common director, section 297 would not apply to the public company but apply to the private Company. The reason for the same is that the section intends to prevent transaction whereby the public company's funds should not be unduly transferred to the private company where their is a common Director.

Regards

Sandeep