Section 188 of companies act, 2013
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
13 January 2015
Hello,
We have a client. There are four private Companies whose directors are interested parties in all four Companies(i.e. directors in all 4). The purchase & sale transaction between two of these companies requires Board approval as per Sec 188. But since interested parties cannot participate this is not possible. There are also some other shareholders apart from these directors. But approval through general meeting is also difficult since the other shareholders are unable to attend the meeting in any case due to some reasons. So how can we comply with the section 188. Please suggest me the solution for this.
We have a client. There are four private Companies whose directors are interested parties in all four Companies(i.e. directors in all 4). The purchase & sale transaction between two of these companies requires Board approval as per Sec 188. But since interested parties cannot participate this is not possible. There are also some other shareholders apart from these directors. But approval through general meeting is also difficult since the other shareholders are unable to attend the meeting in any case due to some reasons. So how can we comply with the section 188. Please suggest me the solution for this.
16 January 2015
do the sale and purchase at arm's length price. question of related party will not arise
Querist : Anonymous
Querist :
Anonymous
(Querist)
16 January 2015
The company manufactures unique products for different parties. Hence no comparison is available for arms length price.
17 January 2015
Arm length price means the market prevailing prices... you may take the price of equivalent type of commodity ..if you are going to sold it to outsider, the price is market prevailing prices...
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- TDS on Consultancy- Non DTAA
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
- Reopen of assessment proceeding
- Depreciation of fixed assets- coop housing society in mumbai
- Management System (IMS)
- Condonation . E-Verification of last year return .
- Eway bill generation from place other than registeted
- TDS Return Q1 FY 2026-27
- Rental income gst and it purpose
- Query – TDS on purchase of land from NRI under Income-tax Act, 2025
- EPF FULL & FINAL RULES IN 2026
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- STATUTORY AUDIT OF A SMALL PRIVATE COMPANY INCORPORATED ON 28.03.2025
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
- How to pay remaining amount of TDS after due date?
- Resigning a auditor from the company for misconduct
- RCM @ 5% on Hamali charges, Transport Charges, Unloading charges we take ITC or not
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
