SECTION 294AA

POWER OF CENTRAL GOVERNMENT TO PROHIBIT APPOINTMENT

OF SOLE SELLING AGENTS

Appointment of sole selling agents barred for period of 5 years Industries notified in pursuance of sub-section (1)

In exercise of the powers conferred by sub-section (1) of section 294AA of the Companies Act, 1956 (1 of 1956), read with the notification of the Government of India in the Ministry of Law. Justice and Company Affairs ( Department of Company Affairs) No.GSR 343(E), dated June 24, 1975, the Company Law Board being of the opinion that the demand for the categories of goods specified below is substantially in excess of the production or supply of such goods and that the services of sole selling agents will not be necessary to create a market for such goods; hereby declares that sole selling agents shall not be appointed by a company for the sale of such goods for a period of five/three years from the date of publication of this notification in the Official Gazette:

1. Sugar } GSR 484(E), dated 5-9-1975 First exten-

2, Vanaspathi } ded for 5 years vide GSR 518(E), dated

} 5-9-1980. Again extended for 5 years

} vide GSR 724(E), dated 5-9-1985.

3. Cement } GSR 479(E), dated 18-9-1975. First ex-

4. Paper } tended for 5 years vide GSR 539(E)

} dated 18-9-1980. Again extended for 5

} years vide GSR 743(E), dated 18-9-1985.

5. Every category of "bulk drug", "drug" GSR 251(E), dated 18-4-1979,. Further

and "formulations" as defined in the extended for 3 years vide GSR 320(E),

Drugs (Prices Contjrol) Order, 1979, not dated 18-4-1982. Again extended for 3

being:-- years vide GSR 367(E), dated 18-4-1985.

(i) any bonafide preparation included Again extended for 3 years vide GSR

in Ayurvedic (including Siddha) or 461(E), dated 18-4-1988.

Unani (Tibb) systems of medicines;

or

(ii) any preparation included in the

homoeopathic system of medicines.