Related party transactions under companies act 2013

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P.C. Joshi (Querist)

09 June 2014 Dear Friends,

> 1. My company (paid up capital more than 10 crores)
> has joint venture with a foreign company to the extent
> of 27% equity the foreign company holds in my company.If my
> plan to buy goods from JV company, then Sec 188 of the
> Companies Act will trigger. But if the transactions are
> entered at arm length price, then the
> transactions between my company and that company will not
> come under related party transactions. is it correct?
>
> 2. If I have another group company in India in which
> one/two directors and shareholders are common, wants to buy
> goods from my company at prevailing price which is same for
> all the customers. Will the transcations of sale and
> purchase between these two company are related party
> transactions under sec 188?.
>
> 3. If the transactions between my company and its JV
> counter part as per (1) above and my company and another
> group copany(2) above are outside the scope of related
> parties transactions under sec 188, then are both these
> companies require to do any complaince under the companies
> act 2013 & rules like consent of Board of Director or
> passing of special resolution.Or the same and pur4chase
> transcation can be entered with doing anything.
>
> Could anyone please revert on above urgently. please
>

P.C. Joshi

P.C. Joshi (Querist)

11 June 2014 It is such a derth of knowledge sharing people on this forum now that no reply comes on any issue relating to corporate laws/income tax.Any response please???

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