Q & A

1649 Views 1 Ans

1) One of our client is a private limited company ; Their shareholders are body incorporated outside India who holds close to 100%. The two directors are common in both and they do not hold any shares either in company incorporated in India and outside India. Could you pl clarify the following: a) whether body corporate who holds close to 100% falls under holding company b) whether related party is applicable u/s188 despite having common directors. 2) Further exemptions have been give under 196(4) (5) ; can we construe that sec 197 is not applicable to private limited company

Section 188- Related party transactions.

Posted By: Balachandran 9 year(s) ago

This question has been closed if you want to answer,you have to re-open.

Anupama

(a) Body corporate holding close to 100% shareholding is the holding company (b) In view of the exemption notification dt. 05.06.2015, holding and subsidiary company are not considered as related parties with respect to a private company. (c) Yes. section 197 is not applicable to private companies in view of the exemption notification

Comment
Comment (0)

Recently Active Member

Pramod Prabhudesai
B D Jokhakar & Co

Post Your Question

My Q&A

Experts

Ankit Singhi

Deepti Vohra

Popular Tags

DEPOSITS

DISCLOSURES IN MBP-1

Consolidation of accounts

AGM

Preferential basis allotment of shares

PRIVATE PLACEMENT

Amendment of Articles of Association

CLOSURE

Consolidation of Financial Statements and filing to ROC

CSR

View All

Topic

Implementation of new law

View All

Sections

Section 185- Loan to directors, etc.

Section 161- Appointment of additional director, alternate director and nominee director.

Section 205- Functions of the Company Secretary.

Section 3- Formation of company.

Section 173- Meetings of Board.

View All

About Q&A

Q & A is a unique platform to get your answers. You can create questions by topics or sections for easy identification of your query . You get various alerts to keep you connected and can also search your query.

So keep posting and stay connected

Companies Act 2013/1956

Decoding the New Act

Resource Center

My Section

Information Cafe

Calculators

Connect with us on facebook

Connect with us on Linkedin

Follow on Twitter

Payment Options Available

COPYRIGHT NOTICE: All information and material posted in this website (including but not limited to text, audio, video or graphical images), are subject to copyrights owned by Corporate Professionals eSolutions Private Limited, its affiliates and associates. Any reproduction, retransmission, republication, or other use of all or part of this document is expressly prohibited, unless prior permission has been granted by Corporate Professionals eSolutions Private Limited. All other rights reserved.

Scroll