Sir,
As per Section 2(76)(iii) realated party with reference to company means a private company in which a director or manager is a member or director.
My query is that whether a transaction shalll amount to related party transaction if only relatives of the director as defined in section 2(77) (iii) holds 25% of share in the company with which such tranasaction is going to be entered. ? Directors of both company are different & they are not the members.
Is the company with whom the transaction being entered into a public company....if yes, then refer to point number (v) of 2 (76)....
however, if it is a private company then the same is excluded since clause no (iv) states only the directors and excludes his relatives...
THanks for your reply.
Sir, Please clarify whether Rule 2(e) of the Companies (Meetings of Board and its Powers) Rules 2014 is applicable only to holding company.
Hi,
Rule 2 (e) is in adition to the list as already given in the Act.....it implies that if a company is the subsidiary of another company, then the director or key managerial personnel or his relative of the holding company will be related with reference to the subsidiary company.
Hopefully it is clear....if not revert here
CAclubindia
