Related Party Transaction

    Posted By : CS Gaurav / Published on : 25-Jan-2018 11:37 PM / View : 221 / Comment : 1
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    Dear All, Whether any transaction with the promoter would come under related party transaction? If it is on arms length basis whether there is any requirement of approval? Please enlighten the issue as per the companies amendment act 2017. Thanks
    Read more on : transaction party related

    • Dear Sir,

      Sec 2(76) sub-clause VII include "any person" who provide advice, direction or instructions a director or manager is accustomed to act is considered to be related party for Sec 188 of the Companies Act, 2013.

      Further, No RPT would be undertaken unless approval form BOD has been taken and if it exceeds the limits prescribed under the Act in aspect to paid-up capital and particular transaction then it is mandatory to obtain approval of shareholder by ordinary resolution.

      Hope, I am able to mark your query up to your satisfaction.

      Thanks.

      06-10-2018 / 05:01:48 AM
      Reply



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