Related person (section 15)

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;
Replies (2)
Quick Summary
This discussion clarifies the definition of 'related persons' as outlined in Section 15 of an Act. It explains that individuals are considered related if they serve as officers or directors in each other's businesses. An example illustrates this: if Mr. A, a major shareholder of Xyz Ltd, becomes a director of ABC Ltd, and Mr. B, a major shareholder of ABC Ltd, becomes a director of Xyz Ltd, then Xyz Ltd and ABC Ltd are deemed related.

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

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