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Could you pl clarify the following: whether Sec 188 ( Related party) is applicable for appointment of a Director who is not related to the existing director nor holds any shares in the company?

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Posted By: Balachandran 10 year(s) ago

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


    Akansha

As per sec 2(76) of the Act, related party with reference to a company means a director or his relative. Thus, in the cited case if director appointed receives anything by way of remuneration over above the remuneration to which he is entitled then yes it would attracts provision of section 188. for more details kindly refer explanation to sec 188 i.e. office or place of profit

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