TaXpert
15121 Points
Joined September 2007
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.