Related party transaction

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

24 May 2015 XYZ Pvt ltd. forms a JV with ABC Pvt. Ltd. naming it as XYZ-ABC JV & Co. for a contract. XYZ Pvt. Ltd. holds 25% (therefore it will get covered under associate concern). Now JV Co. wants to procure some services from XYZ Pvt. Ltd. as well as ABC Pvt. Ltd. due to Related Party transaction clause under Companies Act 2013. XYZ Pvt. Ltd. cannot pass resolution for providing service as it is a related party (because it is an associate concern). So how can the transaction be conducted between JV & XYZ Pvt. Ltd.

Read more at: https://www.caclubindia.com/forum/related-party-transaction-328179.asp

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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24 May 2015 Pass the resolution and conduct the transaction.
See the link.
http://www.mondaq.com/india/x/346678/Contract+Law/Related+Party+Transactions+Companies+Act+2013