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Sir, ABC PVT LTD has Three Directors on Their Board. They enter into a transaction with XYZ PVT LTD. There are no common Directors between the company. But one of the Directors of ABC PVT LTD is a member of XYZ PVT LTD. Will the transaction amount to Related Party Transaction.

Director

Posted By: Divakaran suresh 8 year(s) ago

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

Sunil Kumar Singla

in that case, the transaction fall under section 188, Related party transaction of the Companies Act, 2013 but private companies are exempted under section 188 as per circular dated 5th June, 2015.

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Comment (1)

Tarun Mohan Chopra

Agree with Respected Singla Sir, The company has to pass O.R, interested member can participate in General Meeting.

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