TMI BlogRelated party transactions.X X X X Extracts X X X X X X X X Extracts X X X X ..... ith respect to (a) sale, purchase or supply of any goods or materials; (b) selling or otherwise disposing of, or buying, property of any kind; (c) leasing of property of any kind; (d) availing or rendering of any services; (e) appointment of any agent for purchase or sale of goods, materi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the company, if such member is a related party: Provided also that nothing in this sub-section shall apply to any transactions entered into by the company in its ordinary course of business other than transactions which are not on an arm s length basis. Explanation. In this sub-section, (a) the expression office or place of profi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ction means a transaction between two related parties that is conducted as if they were unrelated, so that there is no conflict of interest. (2) Every contract or arrangement entered into under sub-section (1) shall be referred to in the Board s report to the shareholders along with the justification for entering into such contract or arrangement. (3) Where any contract or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r employee who had entered into such contract or arrangement in contravention of the provisions of this section for recovery of any loss sustained by it as a result of such contract or arrangement. (5) Any director or any other employee of a company, who had entered into or authorised the contract or arrangement in violation of the provisions of this section shall, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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