Section 297

Others 920 views 5 replies

Vani.A

168 Points Joined March 2010

Hi friends,

A Private ltd company with a paid up capital of less than 1 crore, making sales and purchase of Goods with 2 partnership firms and 4 private limited companies in the same management. Out of the 4 private limited companies 1 pvt company has capital more than 1 crore.

TIll date no resolution has been passed and approval was received.

Kindly provide if you have any resolution format and also advise me whether Central Government approval is required for the company with more than 1 crores.

Regards

Vani.A

Replies (5)

CA. Kunal Lakhotia

ACA

1006 Points Joined May 2010

no CG approval is reqd.

Shridhi Jain

Company Secretary

1678 Points Joined July 2009

Yes, CG approval is required for companies having paid up cap of rs. 1 crore or more.

Companies having less than Rs. 1 crore capital has to pass a BR for consent of BOD.

CA Deepak Rathore

EXPERT

281 Points Joined December 2010

Where PUC of the company less than 1 crore -prior approval of BOD required

However Incase of necessity Co. can puchase or sale without the approval of BOD,

Provided that same approved with in 3 month after that transaction.

Such contract is voidable at the option of Board

Specimen of BR is attached

CA.SKR

CA; CS-Final (One Group); DISA (ICAI); I

442 Points Joined August 2009

Agree with CS.Shridhi Jain.

CS Nilesh Vitekar

Company Secretary

72 Points Joined May 2011

Yes, CG approval is essential to validate the transactions for the Company whose paid up capital is more than 10 Millions, otherwise it may go into default and require tobe compounded u/s 621A.

CS Nilesh Vitekar