Shareholder related party Transaction
This query is : Resolved
22 March 2022
shareholder can be related party,only if he has hold shares.
24 March 2022
Related Parties Examples
1. A director or his relative (Relative means a member of the same HUF, husband, wife, father, stepfather, mother, stepmother, son, stepson, son’s wife, daughter, daughter’s husband, brother, stepbrother, sister, step-sister)
Mr L, Mr M and Mr N are directors and the relatives of these Directors are considered as related parties.
2. Key managerial personnel or his relative Say, Mr O is a Company secretary, his relatives will be considered related parties
3. A firm in which a director, manager, or relative is a partner
Mr L is a partner at RST. Pvt. Ltd, another firm. This firm will also be considered as a related party.
4. A private company in which a director, manager, or relative is a member or director Mr. M is a director in M Pvt Ltd – In this case M Pvt. ltd becomes a related party. Even when Mr. M’s relative is a member or director in M Pvt ltd, this company will be considered as a related party.
5. A public company in which a director or manager is a director and holds along with his relatives more than 2% of its paid-up capital
Mr. N along with his relatives holds more than 2% of the paid-up capital of N ltd. In this case, N Ltd will be considered as a related party.
6. Any body corporate whose board of directors, MD or manager is required to act in accordance with the advice, directions or instructions of a director or manager (NA in cases when these directions are followed in a professional capacity) When P Ltd acts on the directions of Mr. L, P Ltd will be a related party.
7. Any person on whose advice, directions or instructions a director or manager is required to act (NA when this is done in a professional capacity) Mr A holding 51% in LMN Ltd on whose advice Mr L has to act will be considered as a related party.
8. Holding, Subsidiary or Associate of such company These all will be considered as related parties:
– ABC Ltd holding 51% in LMN Ltd (Holding Company)
– LMN Ltd holding 51% in XYZ Ltd (Subsidiary Company)
– DEF Ltd holding 30% in LMN Ltd (Associate Company)
9. Any company which is a subsidiary of a holding company to which it is also a subsidiary
1. A director or his relative (Relative means a member of the same HUF, husband, wife, father, stepfather, mother, stepmother, son, stepson, son’s wife, daughter, daughter’s husband, brother, stepbrother, sister, step-sister)
Mr L, Mr M and Mr N are directors and the relatives of these Directors are considered as related parties.
2. Key managerial personnel or his relative Say, Mr O is a Company secretary, his relatives will be considered related parties
3. A firm in which a director, manager, or relative is a partner
Mr L is a partner at RST. Pvt. Ltd, another firm. This firm will also be considered as a related party.
4. A private company in which a director, manager, or relative is a member or director Mr. M is a director in M Pvt Ltd – In this case M Pvt. ltd becomes a related party. Even when Mr. M’s relative is a member or director in M Pvt ltd, this company will be considered as a related party.
5. A public company in which a director or manager is a director and holds along with his relatives more than 2% of its paid-up capital
Mr. N along with his relatives holds more than 2% of the paid-up capital of N ltd. In this case, N Ltd will be considered as a related party.
6. Any body corporate whose board of directors, MD or manager is required to act in accordance with the advice, directions or instructions of a director or manager (NA in cases when these directions are followed in a professional capacity) When P Ltd acts on the directions of Mr. L, P Ltd will be a related party.
7. Any person on whose advice, directions or instructions a director or manager is required to act (NA when this is done in a professional capacity) Mr A holding 51% in LMN Ltd on whose advice Mr L has to act will be considered as a related party.
8. Holding, Subsidiary or Associate of such company These all will be considered as related parties:
– ABC Ltd holding 51% in LMN Ltd (Holding Company)
– LMN Ltd holding 51% in XYZ Ltd (Subsidiary Company)
– DEF Ltd holding 30% in LMN Ltd (Associate Company)
9. Any company which is a subsidiary of a holding company to which it is also a subsidiary
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Is this income indian or foreign income?
- ITC temporary reversal and reclaim
- Inventory of finished goods
- Applicable TDS rate for sale of property in Nov 2024
- Tds on building rent monthly
- REGARDING 25 AS DATE OF PAYMENT AND DATE OF BOOKING
- Quiery in relation to GST liability in case of an advocate who has obtained GST registration.
- Clarification on Documentation of Paid-Up Capital Contribution by Directors
- Can we claim ITC of Feb-2024 in the month of November-2024 which was not claimed by oversight
- Sale of property furniture sale
- COP Surrender 2024
- Regarding Waiver of Interest levied u/s 50 of PGST/CGST Act
- LAST YEAR 2022-23 ITC IN NEXT YEAR 2023-24 REPORITNG IN GSTR-9
- MIS MATCH OF INVOICE NUMBER
- IGST Credit-Show cause notice issued-confusion
- Issue of gst e invoice
- How to adjusted advances given or receipt
- Foreign vendor without PAN unable to to register due to non receipt of OTP on foreign number ?
- 133(6) DIN INVALID format error - ->WHERE TO REPLY 133(6) notice?
- Query for dubts
Trending Online Classes
CAclubindia
