cpc

sec.297 of the companies act & trademark


Dear All,

A substantial interest holder and a Director of a Pvt. Ltd.Company (paid up capital more than1 crore)  transferred a Trademark to the Company for Rupee One only. Market value of the Trademark was about moe than a billion rupees. The director did not mind because he owned more than 90% shares of the company.

No prior approval of Central Govt. was obtained because it was thought that the "trademark" was neither "goods" nor "merchandise", and certainly not a service. Further, in effect it was as good as a gift.

Whether there is any violation of section 297 of the Companies Act. I recollect having seen an Article by Mr Ankur Garg , but now I am not able to trace that article. But that article did not have support of any judicial pronouncement.

Can anybody help me.

Ashok Garg

 
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Corporate Commercial & IP Lawyer

 

Dear Mr. Ashok,


Please check the below link


http://www.caclubindia.com/forum/central-govt-involvement-under-section-297-49928.asp

 

Thanks

Nagaraj

IP & Business Lawyer

IP Lex Global Services

Email: nagaraja_bs@iplexglobal.in

Mob: 0091-09902007635 / 34

 
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Sorry Mr Nagraj

The link leads to a very general reply. I am aware of them. I have asked a specific question- in substance which means that whether a Trademark is a "merchandise' or "goods" at all to attract the provisions of Proviso to section 297(1) of the companies act.

 

Thanks

Ashok Garg

 

 

 
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Dear Mr. Garg,

Sale of trademark is akin to sale of goods, please refer this Madras High Court Judgment SPS Jayam and Company reported in (2004)3MLJ74

 
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Dear Sir,

The judgment can also be seen by visiting the link below

http://www.indiankanoon.org/doc/691314/

 
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It attracts section 297 however as the value of transaction is below Rs. 5000, no prior approval is required in this case.

Info@CorporateEdgeSolution.com

www.CorporateEdgeSolution.com

 
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Dear all

Can anyone guide me that whether assignment/transfer of Trade mark between group company attracts section 297 of the Companies Act  or not ?

Is it necessary to go for valuation at the time of transfer/assignment ?

Can we transfer the TM at any value between the group Company ?

Also whether trade mark will fall under the definition of goods or not ?

Pls guide me on the above.

 
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