TMI BlogRelated party transactionsX X X X Extracts X X X X X X X X Extracts X X X X ..... or purchase or sale of goods, materials, services or property; (f) such related party's appointment to any office or place of profit in the company, its subsidiary company or associate company; and (g) underwriting the subscription of any securities or derivatives thereof, of the company: Provided that no contract or arrangement, in the case of a company having a paid-up share capital of not less than such amount, or transactions not exceeding such sums, as may be prescribed, shall be entered into except with the prior approval of the company by a 1 [resolution]: Provided further that no member of the company shall vote on such 1 [resolution], to approve any contract or arrange ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y or body corporate holding it receives from the company anything by way of remuneration, salary, fee, commission, perquisites, any rent-free accommodation, or otherwise; (b) the expression arm's length transaction 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 arrangement is entered into by a director or any other employee, without obtaining the consent of the Board or approva ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2. Inserted vide THE COMPANIES (AMENDMENT) Act, 2015 - dated 25th May 2015 3. Substituted vide THE COMPANIES (AMENDMENT) Act, 2015 - dated 25th May 2015 before it was read as, special resolution 4. Inserted vide The Companies (Amendment) Act, 2017 Dated 03-01-2018 w.e.f. 09 February, 2018 5. Substituted vide The Companies (Amendment) Act, 2017 Dated 03-01-2018 w.e.f. 09 February, 2018, before it was read as, shall be voidable at the option of the Board 6. Substituted vide THE COMPANIES (AMENDMENT) ACT, 2020 dated 28-09-2020 before it was read as punishable with imprisonment for a term which may extend to one year or with fine which shall not be less than twenty-five thousand rupees but which may e ..... X X X X Extracts X X X X X X X X Extracts X X X X
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