Section 188 of the companies act, 2013

This query is : Resolved

Revati Sathe (Querist)
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19 October 2016 As per the Companies (Amendment) Act, 2015, w.e.f .25/05/2015 proviso to Section 188 of the Companies Act, 2013 was amended as
Provided that no contract or arrangement , ------------------- shall be entered into except with the prior approval of the company by resolution ( word Special was omitted), but Rule 15 (3) of the Companies (Meetings of Board and its powers) Rules, 2014 was amended w.e.f 14/12/2015,

Now for entering into related party transaction regarding rent agreement on 30/06/2015, wthethter to pass Special Resolution or Ordinary Resolution

Thanks in Advance

Pratik Shah

Pratik Shah (Expert)
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20 October 2016 That was good observation.
As per my opinion, the rules are always secondary to the provisions of the Act. If the Sections are in contradiction with its corresponding rules, the sections will always prevail. I guess, you can ordinary resolution in your case.