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Hi in one Private limited company there are only two Directors and they are only shareholders. The Company proposes to enter related party transactions with a Firm in which such both Directors and shareholders are partners in that Firm. Please let me know company can pass special resolution in this case ? b/c third prov of section 188 say that no member of the company shall vote on such special resolution to approve contract or arrangment which may be entered into by the company, if such member is a related party ?

Section 188- Related party transactions.

Posted By: Vasant patel 10 year(s) ago

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


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Pramod Prabhudesai
B D Jokhakar & Co

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