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Dear Sir Sub-section 6 of the Section 149 of Comapnies Act 2013 provides for meaning of idependent Director and cluse (c) & (d) of sub-section 6 of section 149 of Co. Act, 2013 provides that Indednepent Director or his relaives has or had no pecuniary relationship or transaction with Company, its holding, subsidiay or associate company etc. Please explain the meaning of "Pecuniary Relationship" and "pecuniary transactions"

Independent Director

Posted By: Vasant patel 8 year(s) ago

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    D.HANUMANTA RAJU & CO

The Word Pecuniary is derived from latin word (Pecu=Cattle). In good olden days, Cattle and Sheep were an ancient medium of Barter and Exchange. It means in the absence of currency, they used cattle and sheep for the purpose of exchange under Barter System. “Pecuniary” means relating to or connected with “Money”. The terms “Pecuniary Relationship” and “Pecuniary Transaction” have been referred to various places of Companies Act, 2013 under Section 149(6). “Pecuniary Relationship” presupposes existence of relationship with the company for getting money by doing retainership, consultancy or otherwise. General Circular 14/2014 dated 09th June 2014 also clarifies ‘’Pecuniary Relationship” and “Pecuniary Transaction”. Here in this context, Independent Director should not get pecuniary advantage for him being an Independent Director of Company directly or through his relatives subject to such limits as mentioned in the said Section.

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Expert    Ankit Singhi

pecuniary relationships between any monetary transaction. MCA has also issued a clarification in this regard , please circular no 14/2014

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