hi experts,
Here is a situation where a listed company having no turnover as the project are in pipeline and they have some related party transaction which have are of lower amount as rent paid and such.
Now listing agreement clause 49 says any material related party transaction requires shareholder approval also same need to be attached to CG report.
"Material transaction : if the transaction / transactions to be entered into individually or taken together with previous transactions during a financial year, exceeds five percent of the annual turnover or twenty percent of the net worth of the company as per the last audited financial statements of the company, whichever is higher."
Does this co. transaction exceeds 5% of annual turnover as it has zero turnover
CAclubindia
