Sale of Fixed Assets
Querist :
Anonymous
(Querist) 10 July 2010
This query is : Resolved
Sir,
My query is regarding for sale of fixed assets. If the Company want to sale 10% fixed assets. Whether Section 293 is applicable or not. Shareholders approval is necessary in this case. Please clarify the procedure required and also the required resolution is needed.
Heaven 2011
(Expert) 12 July 2010
Dear Sir,
Kindly note that section 293(1)(a) is applicable for sale of the whole or substantially the whole of the undertaking of the company. Here you have to emphasize over the word undertaking which meant a business unit or enterprise in which the company may be engaged in gainful occupation. It does not consist mere assets or property. So it is not applicable. But if the buyer have a common director then section 297 read with section 299 might come into play.
Regards,
