new public co.

Dear All,

Ours is a listed co. and for practical convinience , we decided to open a new pub. co. mainely to avoid sec. 297 of the C.A.'56.

could anybody share with me the procedure for the floating a new pub. co. with practical suggestions?

As stated to avoid sec. 297 what should be the best idea out of the following options to incorporate an closedly held unlisted public ltd. co. with an idea to procure and supply certain raw material to the  LISTED PUB.CO and also to market the finished product of that co. :

1. with same directors of listed co.- as directors and members

2.with same directors of listed co-as director only but not members

3.with same directors of listed co-as member and not director

4. with relatives of the director of listed co as director and not members

5. with relatives of the director of listed co as members and not director

anticipating an early response.

 

Replies (1)

Please correct me if I am wrong

Book written by Sanjiv Agrawal C.M. Bindal and Vijay K.Jain clearly state in the Scope of section 297 paragraph that, This section does not control all type of contracts with the person specified by it and it also does not apply to contracts between two Public Limited Company ,There is nothing in this Act prohibiting contract between a private and a public company with some common share holders and directors . 

hence according to my knowledge you can opt for any combination as it does not have any implications on contract between two Public Ltd. Co.

In order to clarify your doubt you can go through the earlier queries raised on this section through same forum ;

regards,

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