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Section 297

raspreet kaur (job) (55 Points)

09 June 2010

Whether Section 297 is applicable to contracts entered into between two public limited companies??

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Ankur Garg (Company Secretary and Compliance Officer) (114773 Points)
Replied 09 June 2010

Section 297 is not applicable to contracts entered into between two public limited companies.

Ankur Garg (Company Secretary and Compliance Officer) (114773 Points)
Replied 09 June 2010

Situations and conditions where section 297 is not applicable:

1. Contracts between two public limited companies.

2. Contracts between a company registered under the Companies Act and a company incorporated outside India.

3. Contract between company and a private company of which the relative of a director is a member or a director.

4. Contracts for sale, purchase or lease of immovable property.

5. Contract for employment of a director as managing director or whole-time director.

6. Transaction of a loan made to a director by the company, since it is not a sale or purchase of goods or a contract to render services.

7. The Central Government's approval under the proviso is not applicable to a Government company in respect of contracts with another Government company.

8. Professional services rendered by solicitors/advocates or by firms of solicitors and advocates.

9. Contracts entered into by the company with a dealer on a 'principal to principal' basis, provided the dealer does not acquire the same on agency basis.

Best Regards

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