A person having two company named Praktika (Pvt Ltd), Global (Partnership).
1) Gloabl selling a telecom product to Compnay named "XYZ", Then the "XYZ" Selling the same product to Praktika. Is it legal?
2) Praktika buy the product from "XYZ" and seles to Global. Is it legal?
Case 2 will be regarded as related party transaction attracting provisions of Section 297 of the companies act, 1956. Board approval is required for such transaction. In addition, if the paid up capital of the company is not less than Rs.1 crore, previous approval of the Central Government is also required.
Case 1, please clarify if company XYZ has any of the directors / partners of Praktika (Pvt Ltd) or Global (Partnership) in its Board.
| Originally posted by : Jayashree S Iyer | ||
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Case 2 will be regarded as related party transaction attracting provisions of Section 297 of the companies act, 1956. Board approval is required for such transaction. In addition, if the paid up capital of the company is not less than Rs.1 crore, previous approval of the Central Government is also required. Case 1, please clarify if company XYZ has any of the directors / partners of Praktika (Pvt Ltd) or Global (Partnership) in its Board. |
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Mr. A is the director of Praktika Pvt Ltd and one of the parner of Global. And Praktika's paid up capital is 1,00,000/-
Praktika is Incorporated in Hyderabad ROC.
Global has deed of partnership in Delhi.
But both are running at Mumbai in a single office.
The Company XYZ is also pvt ltd and its director is friend of Praktika's director
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