Legal Question in Business Law in India

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,

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.