• Filter Your Search
            
       
 
Notifications
(0)
Circulars
(0)
Orders
(0)
News
(0)
Queries
(0)
No updates found in last 7 days.
Notifications|Circulars|Orders|News|Queries


Q & A

 
2268 Views 2 Ans

Rules 15(3) (ii) (a) of the Companies (Meetings of Board and its Powers) Rules, 2014, specify threshold limit for related party transactions namely: - Sale, purchase or supply of any good or materials, Selling or otherwise disposing of or buying, property of any kind, Leasing of property of any kind etc. - Limit is 10% of Turnover or Rs. 100 Crores whichever is lower. My questions Is this limit apply for the transactions with individual related party or all related parties together? Suppose the company proposes to entered into related party transactions with Three Parties A,B, C and Individual amount of transactions P.A. with A- is Rs. 2 Crores, B- is Rs. 5 Crores and C- is Rs. 10 Crores. If we consider threshold limit per related party then in this case, only C is cover under the threshold limit prescribed under the rule, then should company require to obtain approval of shareholders for related party transactions with “C” only and for A and B Board approval is suffice ?

Section 188- Related party transactions.

Posted By: Vasant patel 9 year(s) ago

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


    Hitesh

Yes. I agree with Akansha. You should take shareholders approval for the individual related party, which cross the limit as given in the rules, for other related parties board board approval is suffice.

  • Comment
  •   Comment (0)

    Akansha

Please take note that existing sub rule 3 of rule 15 is replaced by new sub rule 3 vide notification dated August 14, 2014. Further, in the cited case, If company proposes to enter into related party transaction amounting to Rs. 100 cr or more with C , then yes special resolution is required for RPT with C only and for A & B Board approval is suffice. It is hereby also clarified in amended rule that limits specified shall apply for transaction or transactions to be entered into either individually or taken together with the previous transactions during a financial year.

  • Comment
  •   Comment (0)

Recently Active Member

Recently Active Member

Pramod Prabhudesai
B D Jokhakar & Co

Post Your Question
My Q&A
 


Topic

Sections

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


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.

© Corporate Professionals eSolutions Pvt Ltd. | All Rights reserved
Scroll