Query related to related party transactions

1) Sec.297 applies to sale or purchase of goods or services.  Shares are also goods and hence sale of shares will be covered u/s 297.

2) In this case seller is public company and the buyer is private company. 

3) Sec.297 will apply in the given case to the buyer private company only if any director of selling public company is a director or member of the buyer private company.  However, from the fact it appears that only relative of director of selling co. is director of private company.  Hence Sec.297 will not apply.

Assuming that the transaction  is not covered u/s 108A to 108I of the Act, no other formalities will be required.  All companies have to pass suitable Board resolution in this regard.