22 October 2016
Whether in related party transaction, advance money given is allowed or not . If allowed what is procedure and any maximum limit for the same.
24 October 2016
According to section 188 of the Companies Act 2013, if the advance money is given for any of the transaction mentioned in section 188(1), company needs to pass Board resolution at the Board Meeting and details of such disclosures shall be made in Form AOC -2 which forms the part of Board Report. And as per Rule 15 of Meeting of Board And Power rules, if any othe transactions exceeds the limit given under rule 15, then prior approval of members in general meeting is also required
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