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    Related Party Transactions

    Posted By : Juhee Goyal / Published on : 27-Jul-2022 05:31 AM / View : 79 / Comment : 2

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    Hi members!

    Whether it is necessary to pass Board Resolution if a transaction is
    transacted at arm’s length basis with a related party?
    Read more on : transactions party related

    • Dear Juhee,

      Yes, it is necessary to pass Board Resolution even if the transaction made by company on arm length basis with related party.

      Hope it helps you

      Thank You.

      28-07-2022 / 05:14:49 AM
      Reply
    • Dear Juhee,

      Fourth Proviso of Section 188(1) of the Companies Act, 2013 states that nothing in this sub-section shall apply to any transactions entered into by the company in its ordinary course of business other than transactions which are not on an arm’s length basis

      Thus it may be concluded that passing Board Resolution is not necessary in case transaction is transacted at arm’s length basis with a related party

       

      28-07-2022 / 05:18:09 AM
      Reply
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