What is Section 297 of Companies Act?

Section 297 in The Companies Act, 1956. 297. Board’ s sanction to be required for certain contracts in which particular directors are interested.

Which companies act was repeated by the present Companies Act 1956?

The Companies Act 1956 was an Act of the Parliament of India, enacted in 1956, which enabled companies to be formed by registration, and set out the responsibilities of companies, their directors and secretaries….

Companies Act 1956
Enacted 18 January 1956
Commenced 1 April 1956 and amendment 2015

What steps must be taken to form a company under the Companies Act, 1956?

Get the Memorandum and Articles of Association signed by, at least 2 persons in case of Private Limited Company, at least 7 persons in case of Public Limited Company, each shall also write in his own hand his fathers name, occupation and address and number of shares subscribed for, and duly witnessed by at least one …

Which word is not defined by the Indian Companies Act 1956 but is defined by the Indian Companies Act 2013?

– Companies Act 2013 introduced a new concept which was not there in Companies act 1956 that was “One person company”. – No approval is now required for conversion of the Private company to one person company or vice versa.

Under which circumstances a company can be wound up?

Circumstances in which a Company May Be Wound Up A special resolution is passed by the company that the company shall be wound up by the tribunal. Failure of the company in reporting a statutory report at the registrar’s office. Non-commencement of the company in business within one year of incorporation.

What is Section 188 of Companies Act 2013?

1. No member of the company shall vote on such resolution, to approve any contract or arrangement which may be entered into by the company, if such member is a related party [second Proviso to Section 188(1) of the Act].

Which is the latest company act?

The Companies Act, 2013 passed by the Parliament has received the assent of the President of India on 29th August, 2013.

What is the difference between Companies Act 1956 and 2013?

The Companies Act, 1956 (existing Act) contains 658 sections and XV schedules. The Companies Act 2013 has 464 sections and 7 schedules. The Act, has lesser sections as the Companies will be governed more through the rules which are yet to be prescribed.

What are the conditions that need to be satisfied to be a small company as per Companies Act, 2013?

A small company is a private limited company that satisfies both the following conditions:

  • Paid-up share capital does not exceed Rs. 50 lacs or such higher prescribed amount which shall not be more than Rs.
  • Turnover of the preceding financial year does not exceed Rs.

What is the difference between compulsory and voluntary liquidation?

Unlike voluntary liquidation which is typically initiated by the company’s directors or other shareholders, compulsory liquidation is a process which is typically started by a frustrated creditor and ordered to happen by the court.

Which is required under the Companies Act 1956?

No Central Government approval is required. For both the Sections, entries are required to be made in the Register maintained under Section 301 of the Companies Act, 1956. 4. Any violation of Section 297 is compoundable offence. Any violation under Section 299 is very serious and makes the director to vacate the office under Section 283 of the Act.

What is Section 297 of the Companies Act?

297. Board’ s sanction to be required for certain contracts in which particular directors are interested.

When does Section 299 of the Companies Act apply?

Section 299 does not apply to companies incorporated under Section 25 of the Companies Act, 1956, in respect of the cases to which sub-sections (1) and (3) of the Section 297 applies. Section 299 applies to any contract or arrangement to which a company is party and in which a director is interested.

What was the related party transaction Act 1956?

The Companies Act, 1956 laid need of the approval of Central Government for related party transaction by companies having capital as prescribed (Rs 1 crore) Section 297 of the companies act, 1956, whereas Companies Act, 2013 calls for larger disclosures with members’ approval.