A Ltd hold share of B Ltd as Trade investment. Mr. Lee is director in both the company. Now A Ltd want to sale this "investment" to Mr. Lee. Whether this transaction is within the meaning of related party transaction as per sec 188 of Co. Act 2013?
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Section 188 related query
Replies (7)
Please mention the amount of transaction and net worth of both the companies. If transaction amount is more than threshhold set out by section 188 then
Consent in bm reqd
Special resolution reqd
Disclosure in explanatory st reqd
In agenda disclosure reqd
As per my opinion it is a related party transaction under section 188 becoz this section covers the transacion of sale and purchase of goods and share is also treated as a goods. take others views also.
Yes I also agree with the given by Mamta
Dear Mahesh,
Prior to analyzing the transaction it is improtant to evaluate the relation between Company A and the director invloved.
Accordingly, as per Section 2(76), Company and Director are related only if the Concerned Director is a Managing Director of Company A Ltd.
Regards
Hitesh Khandhadia
Thank you all, I Read 2(76) only director word is written I could not found MD, correct me if I am wrong
| (76) | "related party", with reference to a company, means— |
| (i) | a director or his relative |
can Share is come under the meaning of "Property of any kind"
Managing Director gets covered under KMP
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