20 December 2016
When transaction is at arm's lenght and in the ordinary course of business , is it necessary to attached AOC-2 and whether noting in Board Meeting is necessary
20 December 2016
People have difference of opinion about attaching AOC-2. Since Section 188 does not applicable to such transactions, some people says that it is not required to be attached. However, if you see the format of Form AOC-2 given in rules, it provides a table for mentioning Transaction at Arm's length price as well. So, it is advisable to attach AOC-2.
It is advisable to take note in Board meeting. However, in-principle approval in Board meeting is not required for entering into such transaction.
21 December 2016
Thank you ,but still I am confused as Company has given rent to one Director and husband -wife are Director , both are interested , so how to pass Board Resolution ?
21 December 2016
Thank you, but still I am confused as Company has given rent to one of Director and husband - wife are Director , both are interested , so how to pass Board Resolution otherwise to show one EGM after Dec. 2015 and get the ordinary resolutio passed ,but still both members are interested.
CAclubindia
