A Ltd hold share of B Ltd as Trade investment. Mr. Lee is director in both the company. Now A Ltd want to sale this "investment" to Mr. Lee. Whether this transaction is within the meaning of related party transaction as per sec 188 of Co. Act 2013?
Mahesh (CA Student) (338 Points)
13 October 2015A Ltd hold share of B Ltd as Trade investment. Mr. Lee is director in both the company. Now A Ltd want to sale this "investment" to Mr. Lee. Whether this transaction is within the meaning of related party transaction as per sec 188 of Co. Act 2013?
karan jit singh
(Consultant)
(1299 Points)
Replied 13 October 2015
mamta
(cs)
(28 Points)
Replied 13 October 2015
priyanka maheahwari
(article)
(21 Points)
Replied 13 October 2015
Hitesh Khandhadia
(CA Practice )
(133 Points)
Replied 14 October 2015
Dear Mahesh,
Prior to analyzing the transaction it is improtant to evaluate the relation between Company A and the director invloved.
Accordingly, as per Section 2(76), Company and Director are related only if the Concerned Director is a Managing Director of Company A Ltd.
Regards
Hitesh Khandhadia
Mahesh
(CA Student)
(338 Points)
Replied 15 October 2015
Thank you all, I Read 2(76) only director word is written I could not found MD, correct me if I am wrong
| (76) | "related party", with reference to a company, means— |
| (i) | a director or his relative |
Mahesh
(CA Student)
(338 Points)
Replied 15 October 2015
can Share is come under the meaning of "Property of any kind"
Hitesh Khandhadia
(CA Practice )
(133 Points)
Replied 15 October 2015
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