Legal Question in Business Law in India

related party transactions


Asked on 1/11/17, 4:21 am

2 Answers from Attorneys

Fca Prashant Chavan Expert Edge LLP

11.01.2017

Dear Sir / Madam,

The Ministry of Corporate Affairs defines "related party" as :

(77) ��relative��, with reference to any person, means any one who is related to

another, if�

(i) they are members of a Hindu Undivided Family;

(ii) they are husband and wife; or

(iii) one person is related to the other in such manner as may be prescribed;

Related Party, with reference to a company, means-

(i) A director or his relative;

(ii) A key managerial personnel or his relative;

(iii) A firm, in which a director, manager or his

relative is a partner;

(iv) A private company in which a director or

manager is a member or director

(v) A public company in which a director or manager

is a director or holds along with his relatives,

more than 2 percent of its paid-up share capital.

For more, please follow the links below :

http://www.icsi.edu/portals/32/Interpretation of Definitions.pdf

http://www.mondaq.com/india/x/346678/Contract+Law/Related+Party+Transactions+Companies+Act+2013

Regards,

Read more
Answered on 1/11/17, 7:45 am

The related party transactions must be analysed both from Companies Act, 2013 and Income Tax Act, 1961 perspective. The related party transactions may also attract transfer party regulations.

Read more
Answered on 1/13/17, 2:48 am


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