Go AD-Free with CAclubindia PRO for Rs 167/Month Only. Subscribe Now!

Quorum for related parties transaction

Co Act 2013 617 views 2 replies

Swati Sharma

TRAINEE

328 Points Joined March 2012

Hello Firends,

What shall be the quorum in Board meeting of Pvt. Co. to conduct Related party transaction with Subsidiary Co.

There are 7 directors in Holding Co. of which 5 are common in subsidiary Co.

What shall the qurom to pass RPT and whether all the 5 Directors of subsidiary Co. will be considered interested Director.?

Kindly guide

Regards

Replies (2)

CA Saroj Kumar

Keen to learn something new every moment

2588 Points Joined June 2010

as per section 174(3) states that where any time the number of interested director exceeds or equal to 2 third of total number of directors, the number of directors who are not inetrested directors and present in the meeting , being not less than 2 shall be quorum of meeting.