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.