Forums
Back
Related parties
Corporate & Other Laws
What is sec 188 ? In relation to these related parties
Answers (3)
(Updated)
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 1[or his relative] is a member or director; (v) a public company in which a director or manager 2[and holds] is a director or holds along with his relatives, more than two per cent. of its paid-up share capital; (vi) any body corporate whose Board of Directors, managing director or manager is accustomed to act in accordance with the advice, directions or instructions of a director or manager; (vii) any person on whose advice, directions or instructions a director or manager is accustomed to act:
Transactions Regarded as Related Party Transactions. Any transaction between a Company and its related party relating to a. sale, purchase or supply of any goods or materials. b. selling or otherwise disposing of, or buying, property of any kind; c. leasing of property of any kind; d. availing or rendering of any services; e. appointment of any agent for purchase or sale of goods, materials, services or property; f. such related partyâ??s appointment to any office or place of profit in the company, its subsidiary company or associate company; and g. underwriting the subscription of any securities or derivatives thereof, of the company
Your Reply