Section 188, related party transaction

If the salary given to director is in the capacity of director then not covered u/s 188.

Otherwise if the remuneration paid is in the nature of 188 (1) (f) then yes. It is a related party transaction.

But any payment to director is a related party transaction as per AS 18 and disclosre becomes mandatory.

Hai Aakash..,

remuneration to director will not come under section 188 of companies act 2013. 

And discloure in AOC-2 and approval from board is not required under section 188.

 

Thanks! One more query, What if salary is given to relative of director?

It is considered as related party transaction under As 18 but not conisdered in section 188(1) of the Co. Act 2013.