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July 2009

Transactions covered u/s 297 of the Companies Act, 1956

By Himanshu V. Kishnadwala, Chartered Accountant
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1. Transactions covered u/s 297 of the Companies Act, 1956

Avaya Global Connect Ltd. — (30-9-2008)

 From Notes to Accounts :

    In respect of contracts for the provision/supply of services/goods, with a private company in which a Director of the Company is Director, the Company is of the view that the provisions of Section 297 of the Companies Act, 1956 are not applicable. However, as a matter of abundant caution, the Board of Directors of the Company in their meeting held on 26th October, 2007 resolved to make an application seeking the approval of the Central Government.

     

    Pursuant to above, Company has filed application under section 621(A) for compounding of offence committed under section 297 of the Companies Act, 1956, for the transactions entered in 2006-07 and in 2007-08 (upto February 24, 2008) for which approval is pending. The Company has obtained Central Government approval for entering into transactions with the above mentioned Company from the date of approval February 25, 2008 to September 30, 1010.

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