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Agreement with related party by company

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Vikas (Querist)
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11 August 2017 Dear Expert,
Please guide me whether the pvt. ltd. company can enter into the contract/agreement with related party for leasing/renting of shops for the purpose of company office for the consideration other than cash.

RICHA KUMAR

RICHA KUMAR (Expert)
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11 August 2017 Yes can enter but it depends on the amount of transaction! That is whether you need to pass ordinary resolution or special resolution or take the approval from central government it depends upon the amount of transactions which you are taking up.

Vikas

Vikas (Querist)
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12 August 2017 Thank you Ms. Richa.
Can you please tell me what is the ceiling limit for amount of transaction under which we can pass the ordinary or special resolution and after what we need to take the approval of central government ?
Under which section it is mention ?

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