Hi friend
Is prior approval U/s 297 of Central Government is required for a private company which became the 100% Subsidary of Public Company
CA Amit Kumar
Hi friend
Is prior approval U/s 297 of Central Government is required for a private company which became the 100% Subsidary of Public Company
CA Amit Kumar
Clarification Letter:
The Central Government is of the view that the contracts already entered into by the companies before 1.2.1975, the date on which the Companies (Amendment) Act, 1974 was brought into force, would not require approval under the proviso to sub-section(1) of section 297. In case, however, any modification is made in the terms of the contract or it is renewed after the expiry of its original period, the approval of the Central Government under the said proviso would become necessary. The Central Government's approval under the aforesaid proviso would be necessary in respect of all the transactions except covered under sub-section (2) of section 297.
* LETTER nO.3/2/75-CL-XIV, DATED 9.7.1975.
"Provided that in the case of a company having a paid-up share capital of not less than rupees one crore, no such contract shall be entered into except with the previous approval of the Central Government."
so central govt. approval req. only in certain cases......
and also acc. to me only public cos. are within the perview of this section and not deemed public cos.
CAclubindia
