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Regarding related party transaction

pratik dixit (article) (24 Points)

01 April 2015

If Private Limited Company has 2 Directors & 1 is interested in related party transaction then how the company will pass the resolution in Board meeting without quorum because related rule 15 says that interested director can not take part in passing the resolution.....?????

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2 Replies

P C Agrawal (Registered independent director Past Chairman of Aurangabad Chapter of ICSI Practicing Company Secretary at Aurangabad) (8229 Points)
Replied 02 April 2015

If the transaction is in ordinary course of business and on arms length basis, Sec.188 will not apply. In other cases you can get approval of general meeting.

CS Ankur Srivastava (Company Secretary & Compliance Officer) (17848 Points)
Replied 02 April 2015

Originally posted by : P C Agrawal
	If the transaction is in ordinary course of business and on arms length basis, Sec.188 will not apply. In other cases you can get approval of general meeting.