03 December 2016
Mr. K, is making an arrangement to acquire some Stock–in–Trade from BL Limited for consideration of some furniture lying with him. He is a Director of JS Limited, which is the Holding Company of BL Limited. Advise him on the basis of provisions of Companies Act, 2013.
08 December 2016
Said transection comes under perview of sec 188 of the companies Act 2013. Need to pass prior board resolution and if the value of the transection comes under trishold then members approval required. Since the said transection is not on cash basis hence you cant show the same on ordinary course and arms lenth
09 December 2016
Thanks for the reply. Yes the transaction will require the board approval u/s 188. but the transaction in not on cash basis then the same will require the approval in general meeting u/s 192 i.e non cash transaction. My doubt is whether both sec 188 and 192 are attracted here
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