Section 294AA of the Companies Act, 1956 – Power of Central Government to prohibit appointment of sole selling agents in certain cases – Prohibition for appointment of sole selling agents by companies in specified goods
Notification No. G.S.R. 601(E), dated 16-7-2010
In exercise of the powers conferred by sub-section (1) of Section 294AA of the Companies Act, 1956 (1 of 1956), the Central Government, being of the opinion that the demand for the category of goods specified in the Table below is substantially in excess of the production or supply of such goods and that the services of the 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 any company for the sale of such goods in India for a period of three years from the date of publication of this notification in the Official Gazette.
TABLE
Every category of “Bulk drugs”, “drugs” and “formulations” as defined in the Drugs (Prices Control) Order, 1995, not being, –
(i) any bona fide preparation included in the Ayurvedic (including Siddha) or Unani (Tibb) systems of medicine; or
(ii) any preparation included in the Homeopathic system of medicine.
