Sir,
My query is related to closely held public Company;
As per Companies Act 2013, If a Company intended to entering to a transactions mentioned in section 188(1) with it's one of Director, it will treated as related party transaction under above mentioned section.If the proposed transactions are not in arms length, Company need to take prior approval from it's shareholders.
While taking approval for this purpose, If any member is interested in any transaction, than such member shall not cast vote in meeting regarding such resolution.
If the Company is a closely held Company and all the share holders in the Company are relatives as per Companies Act.so all are interested
So how can Company can take approval in this case.
CAclubindia
