18 July 2016
AOC -2 is a form prescribed for disclosing the particulars of contracts/arrangements as referred to in Section 188(1) entered into by the company with related parties. The main point here is that every transaction entered into under Section 188 of the Act shall be recorded in the Directors’ Report along with justifications
21 July 2016
aoc-2 is also applicable in case of loan and advaces given and taken from related parties if it is ordinary course of business that this is NBFC co.
25 July 2016
Section 188(2) of the Act provides that every contract or arrangement which requires board or shareholders’ approval shall be reported in the Board’s report, along with justification for entering into such contract / arrangement. This would essentially mean that transactions which are either not at arm’s length or not in ordinary course of business would need to be disclosed in board report along with justification.
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