Can anyone explain the following explanation under section 15 for the term "Related person"
Explanation.-For the purposes of this Act,--
[a] persons shall be deemed to be "related persons" if-
[i] such persons are officers or directors of one another's businesses;
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Related person (section 15)
Replies (2)
Nothing to explain more than what is written
Let understand this with Example :
Mr A is major shareholder of Xyz Ltd & Mr. B is major shareholder of ABC Ltd . If Mr. A appoint as director of ABC Ltd & Mr. B is appointed as director of Xyz Ltd , then Xyz Ltd & ABC Ltd treated as Related person
Mr A is major shareholder of Xyz Ltd & Mr. B is major shareholder of ABC Ltd . If Mr. A appoint as director of ABC Ltd & Mr. B is appointed as director of Xyz Ltd , then Xyz Ltd & ABC Ltd treated as Related person
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