Section 192 of Companies Act 2013

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This query is : Resolved

Shivam Jain (Querist)

20 January 2017 Please explain the meaning of "non-cash transactions" in Section 192 of Companies Act 2013 with some examples.

Jatin Bajaj

Jatin Bajaj (Expert)

21 January 2017 AS PER SECTION 192 OF THE COMPANIES ACT 2013, A DIRECTOR OF THE COMPANY , ITS HOLDING COMPANY , SUBSIDIARY COMPANY OR ASSOCIATE COMPANY WHO AQUIRES THE ASSETS FROM COMPANY FOR CONSIDERATION OTHER THAN CASH , THEN PRIOR APPROVAL OF SHAREHOLDER IN GENERAL MEETING IS REQUIRED OR VICA VERSA AND IF SUCH DIRECTOR IS ALSO THE COMMON DIRECTOR OF HOLDING COMPANY , THEN RESOLUTION APPROVAL WILL LSO BE REQUIRED BY PASSING THE RESOLUTIONBY HOLDING COMPANY

Shivam Jain

Shivam Jain (Querist)

21 January 2017 Thanks for replying but my query is : What is the meaning of "non-cash transactions"? Please explain with examples.

c.bakshi

c.bakshi (Expert)

22 January 2017 non - cash means you are using instruments like Cheque, DD, NEFT, RTGS, IMPS for enter into transaction

Shivam Jain

Shivam Jain (Querist)

22 January 2017 @ c.bakshi - thanks for replying but I don't think it's the right interpretation. You're saying that a director making payment by cheque will need shareholders' approval but he'll not need it when he is making payment in "cash".

c.bakshi

c.bakshi (Expert)

23 January 2017 not at all. i am just saying what the term non - cash transactions means, you ask it examples. Moreover, Mr. Jatin bajaj ji cleared it to you. see technically, income tax act, 1961 is not allowing the director to enter into cash transaction for an amount exceeding 20000 with the company. and as per Companies Act, 2013 if some body which includes company also, acquire some assets for consideration other than cash, then it should be in the knowledge of the shareholders, thats why resolution is required

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