section 297 of companies act

sec 297 is applicable in case co enters into any contract with interested directors....

in this case, no approval under sec. 297 is required.

The approval will be required before any transaction after the induction of new director.

Hi,

then in the case of running contracts ? could u please expain this ?

If the paid up capital of the private Limited Company is Rs. 1 crore or more, application has to be made before entering into any transaction with the said firm after the appointment of additional director.

arpita is right