Sec 297 of the Companies Act, 1956
Guest
(Querist) 25 August 2009
This query is : Resolved
Friends,
i would like to know the procedure and detailed paper work/formalities for obtaining the prior approval of Central Govt (Regional Director) for the purpose of Sec 297 of the Companies Act, 1956.
Manish Singh
(Expert) 25 August 2009
Dear Mr, Shah,
f u wish to get approval under Sec 297(1) of the copanies act, you must fill up form 24A WHICH IS TO BE FILED AT the regional director of your jurisdiction. I think you fall under teh Western Region.
the application must be accompanied by teh relevant board resolution along with application fees under the companies (fees on application) Rules 1999.
in general the Reg Dir must revert and dispose of the application within 30 days.
Guest
(Querist) 25 August 2009
what shall b the consequences if transaction already completing without obtaining prior approval?
Manish Singh
(Expert) 25 August 2009
Dear Mr. Shah,
if u have not complied with the quirements of sec 297 (1) , you may bee liable for compounding of offences. for further reference please go through Dintex Dyechem Ltd. re (2001) 104 Com Cases 735 : (2001) 33 SCL 208 (CLB- WB)
you may be liable to pay fine according to sec 629 A of the companies act.
it is advisable to file the application as soon as possible. please take note that the approval shall not be required if the transaction involves payment through cash at the prevailing market price.
enclosures to be filed with fiorm 24 A :
1. Document evidencing payment of fee
2. certified true copy of the agreement to be entered into
certified true copy of the board resolution
4. certified true copy of the audited balance sheet and profit and loss account for last three years.
