Register of contracts sec. 301

Others 3181 views 3 replies

Ashwin

Information Seeker

155 Points Posted on 25 September 2012

Dear All,

please guide, what kind of transactions are entered in the register of contract maintened under section 301, whether we should mention the transaction under section 297 or should also mention the transaction like loan taken or loan given. in case of pvt. ltd. company.

secondly i want to know in case of a pvt. ltd. company section 372 a is not applicable then where should i show the investment made by the company, is it mendatory to maintain register?

Thanks in advance

Regards

Ashwin

Replies (3)

CS Ankur Srivastava

Company Secretary & Compliance Officer

17858 Points Posted on 26 September 2012

Contract which falls under section 297 and 299 are to be registered under section 301 register.

Guest

Dear Ashwin,

As per Section 301 of the Companies Act, 1956, every company (including a private limited company) shall keep one or more registers in which shall be entered separately, particulars of all contracts or arrangements to which Section 297 or Section 299 applies. It does not include Inter-corporate loans and investments.

Since, Section 372A is not applicable to Independent Private Limited companies, the maintenance of register under this Section is just optional for such companies.

Even Secretarial Standards – 4 on Registers and Records says that Independent Private Limited companies need not maintain Register of Inter-corporate loans and Investments.

So, it is upto you to decide whether to maintain a separate Register regarding Inter-corporate loans and Investments.

Warm Regards,

Veeral Gandhi