Kindly give your views on the following:
A company has 4 directors.If the company wants to appoint a person as director who is related to two of such directors,whether provisions of section 188(related party transactions) and 184(2)(specific disclosure) are to be complied.
If the Company wants to appoint the person as the Director who is related to other directors , then as per the provisions of Section 2 (76) (i) of the Companies Act 2013, such director would cover under the defination of related party.
But to attract the provisions of section 188, if the Company is involved in the transactions which are specified as per the provisions of section 188(1) then the provisions of related party transactions would apply.
Thanks for your reply sir.
I had one more doubt
Whether such an appointment will be covered in following related party transaction:
Appointment of a related party to ofiice or place of profit.
CAclubindia
