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Section 297 whether both the companies required CG approval

RAKESH KUMAR SINGH (Practicing CS) (39 Points)

12 October 2010

Dear All

There are two Companies X Pvt. Ltd regd. office in Chennai and Y Pvt. Ltd. regd. office Delhi having paid up capital of more than 1crore and having one 2 common Director. Then clearly transaction between them for sale ------- attracts section 297. I required opinin with which RD application for approval had to me moved or it required to be moved to each RD separately

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CA bhargava (CA) (2017 Points)
Replied 12 October 2010

In the given case,

Both the companies are required to comply with the provisions of Sec 297

since both are entering into the contracts

Ttarget='_blank' rel='nofollow' hrefore , the applications should be made for both respective RD's of TN and delhi.

NIRALI SOLANKI (JOINT MANAGER LEGAL & SECRETARIAL) (87 Points)
Replied 13 October 2010

Dear Friend,

If the registered office of both the companies are falling under the same jusidiction of Rd's office, they can file a common application for taking apporval of transaction under section 297, as in your case both RD are different, you have to make application from both companies for taking approval.