Can Director pay for goods purchase behalf of OPC/Private limited company ?

Can Director pay for goods purchase behalf of OPC/Private limited company ?

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Quick Summary
Yes, a director can pay for goods on behalf of an OPC or private limited company, provided they are appropriately reimbursed. However, it's crucial to ensure the company's own purchasing processes are followed to avoid scrutiny. If the director is involved in the business, this could potentially be classified as a Related Party Transaction (RPT) under Section 188, requiring careful consideration and adherence to regulations.

Yes, if reimbursed him appropriately.

If OCB and ALM Criteria complied then no issue ,else it may questioned that why company is not purchasing itself while buying through director ? If director is in the business it may be RPT u/s 188...

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