Section 297 of companies act, 1956

Hi All

Kindly apprise if section 297 of the Companies Act 1956 is applicable on purchase of shares from a director and his wife (holding shares in other company) by the company to make the other company its wholly owned subsidiary.

Just to share that neither the company nor the director and his wife are in business of selling or purchasing of shares ans its just for the investment purpose.

Thanx