Related party transaction & mgt 14

This query is : Resolved

NAINA JAIN (Querist)
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25 February 2015 A pvt. ltd. company has entered into a agreement for 3 years, with father of its director to let out company's own building for running a new proprietorship business.
( Related party transaction )

Query -

1) Which resolution co. need to pass ( Ordinary / Special )?
2) Borad meeting or members Meeting is required to be called up.
3) which section of CA 2013 will be attracted here..

c.bakshi

c.bakshi (Expert)
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25 February 2015 Section 188 of the Co. Act, 2013 attracts this

however, The director who is interested in the contract will not take part in the board meeting as he/she is interested in the contract and in the first board meeting of the new financial year. The director has to disclose his/her interest in the concern u/s 184.

Ordinary resolution required in the board meeting

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NAINA JAIN

NAINA JAIN (Querist)
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25 February 2015 Sir,

in this case co. has only three director who are real brothers. all the director are interested... how to handle this situation ??

c.bakshi

c.bakshi (Expert)
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25 February 2015 so what about shareholders?

if they are also interested...Transfer some shares to the unrelated person to fulfill the condition of quorum and pass this resolution in the general meeting

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