Related party

My query is regarding whether Board Resolution needed or not?

The situation is there is a Director named Anup Mehta of a Company who is also a KEY MANAGERIAL PERSON. His son Kush Mehta draws Salary in that company as he looks after a business too. But Kush ie son is neither a Director nor MD. 

My question is

1)Whether Board resoution needed for Relative Party for drawing Salary as he falls under relative, If do kindly support with relevant section.

Thank you,

Regards,

Ajay 

Replies (3)
As much as I know, if Transaction is at arm's length price, then at end of year or after end of year, these Transactions are placed before board stating that Transaction were at arm's length price therefore no prior approval taken.
But if Transaction are not at arm's length price, then prior approval must be taken by resolution. Just confirm these provisions before proceeding further
As much as I know, if Transaction is at arm's length price, then at end of year or after end of year, these Transactions are placed before board stating that Transaction were at arm's length price therefore no prior approval taken.
But if Transaction are not at arm's length price, then prior approval must be taken by resolution. Just confirm these provisions before proceeding further
section 188 read with third proviso

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
ARTICLESHIP 29 August 2026
Article Assistant

RRPM & ASSOCIATES LLP

Chennai

CA Inter

View Details
Company
28 August 2026
Audit Manager

K A R M & CO

Mumbai

CMA

View Details
Company
19 September 2026
Finance Manager

Mugdha Art Studio

Hyderabad

CA

View Details
Company
19 September 2026
CA/Semi-CA/BCom

Pravin Sarvaiya

Mumbai

CA Inter

View Details
Company
28 August 2026
Assistant Manager

NRS AND ASSOCIATES

Kozhikode

CA Inter

View Details
Company
ARTICLESHIP 04 September 2026
Accounts Executive

Hema Yashwanth & Associates

Chennai

B.Com

View Details
Company
ARTICLESHIP 21 September 2026
CA Article Assistant

KK & Company Chartered Accountant

Pune

CA Inter

View Details
Company
ARTICLESHIP 01 September 2026
Article Assistant

SGNG & Associates

New Delhi

CA Inter

View Details