Related Party Transactions

This query is : Open

Aroop Datta (Querist)
Follow

03 November 2009 Kindly advise the full section which narrates Related Party transactions under the Companies Act.

I wanted to know the obligations for the company as well as its Directors for Related Party transactions.

Thanks in advance.

CS. Ashish Shah

CS. Ashish Shah (Expert)
Follow

03 November 2009 Dear Mr. Datta,

There is not a single provision in the Companies Act which deals with the heading Related Party Transactions, but the provisions of Section 295, 297, 300 etc. in which if a transactions is done between related party they have to follow procedures. For specific related party transactions disclosures it is AS 18 which needs to be looked into.

So in nutshell the provisions of Section 295, 297, 300 and AS 18 needs to be go through for understanding the disclosure requirements of related party transactions.

With Regards,

Ashish Shah
Company Secretary