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Can a director be a contractor to a company

Others 745 views 3 replies

Hi

Can A Director of a Pvt Ltd company also be a contractor to a company and render services under his induvidual capacity?

 

Replies (3)
it comes under related party transaction
Director and company in which he is a director is is a related party and any transaction between them shall be governed by sec 188 of companies act 2013.
Which are the transactions are deemed to be related party transactions ?
Section 188(1) lists out the related party transactions which is inclusive of transactions done within the meaning of the Old Section 297 and Section 314. In addition, it has also included all related party immoveable property transactions.
The following are considered ‘Related Party Transactions’.
Any transaction between a Company and its related party relating to:
a. sale, purchase or supply of any goods or materials;
b. selling or otherwise disposing of, or buying, property of any kind;
c. leasing of property of any kind;
d. availing or rendering of any services;
e. appointment of any agent for purchase or sale of goods, materials, services or property;
f. such related party™s appointment to any office or place of profit in the company, its subsidiary company or associate company; and
g. underwriting the subscripttion of any securities or derivatives thereof, of the company.


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