Hello everybody,
A small company, where all the directors are members and all are related to each other, has not got the amounts paid to a RPT company approved in the AGM for the past years, eversince Secretarial Standards came into force. The amount paid during FY2019-20 too needs approval. Some transactions have happened during this current FY too. All amounts have been shown in form AOC-2 every year
Can an ordinary resolution be passed to approve the same? What would the resolution be, can someone suggest the same
Further, as a rule, for the future, can the amounts paid during a FY be approved in the following AGM, since it difficult to forecast how much services will be required for the company during a financial year. The company has a policy of giving blanket approval of “materiality”, without mentioning a specific amount w.r.t these RPTs every year in a board meeting held within a fortnight of the beginning of a FY.
Thanks in advance and Regards,
Geetha Gupta
CAclubindia
