Sec. 188 under co. act, 2013

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

21 April 2015 1) What is the meaning of 'ordinary course of business' as provided in 3rd proviso to Section 188(1)? What would be the area covered by it?

2) What is the meaning of 'property of any kind' as provided in Section 188(1)(b)? What are the different types of assets covered in it?

3) Whether providing any asset of the Co. as security for the loan availed by any group Co. will come within the purview of 'selling or otherwise disposing of property of any kind' as provided in Section 188(1)(b)?

Thanks.

Arpit Shah

Arpit Shah (Expert)
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21 April 2015 https://www.caclubindia.com/articles/related-party-transactions-us-188-of-the-co-act-2013-21486.asp#.VTY-KOnqlxA

Querist : Anonymous

Querist : Anonymous (Querist)

22 April 2015 Sec.184 says that when any director is interested, he shall not participate in Board Meeting in which such contract is discussed. Now if we go with the true spirit of the law, when in any transaction all the directors are interested, what should be the solution? If we go with the words, interested director shall not participate in a meeting in which such contract is discussed and not in which resolution is passed.

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