Kindly guide..Reg:Section 297 and susequent CG approval.

Dear Professional Friends

I have a query regarding Section 297.

Mrs. A and her relative are directors in ABC Limited.

Mrs. A and her relative are also directors in Company XYZ Private Limited.

Now XYZ Private Limited wants to avail the services of ABC Limited.

My query is who should go for the Central Government approval.Is it ABC limited???

The paid up capital of both the companies is above Rs. 1 crore.

How to judge, that who should go for the CG approval.??

Kindly guide me on the same.

 

Thanks in advance.

Replies (5)

Hi Sakshi,


Prior CG approval for ABC Ltd is mandatory.


Also find attached chart for different cases.


Regards

Jaideep Pandya

Agreed with the expert...ABC Limited will have to obtain prior approval of the Central Government in prescribed Form 24A.

God Bless

CS Udit Sharma

Not only for this particular situationm, but should one decide that who shld take the CGapproval?

Is it the service provider that has to take the approval??

 

please guide me.

Kindly note

Approval is required for transaction i.e. for the contract which binds service provider and user. It is not concerned with who is providing service.

sale from 6 crores paid up cap to 1 lakh paid up capital. common director. whether CG apprival require? if yes, please tell the procedure.

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