Dear Sir,
If a person is providing professional service to a pvt company (e.g. ROC Compliance's) and now the company desires to appoint him as a director. Can Company do so? or it falls under related party transactions?
Thanks in advance.
Shraya (Practicing Company Secretary) (176 Points)
28 November 2014Dear Sir,
If a person is providing professional service to a pvt company (e.g. ROC Compliance's) and now the company desires to appoint him as a director. Can Company do so? or it falls under related party transactions?
Thanks in advance.
Lalit patidar
(Student)
(45 Points)
Replied 28 November 2014
Yes co. can appoint him as director.
For related party transactions, those transaction which are at arms length price can executed.
CS Divesh Goyal
(Practicing Compnay Secretary)
(50535 Points)
Replied 02 December 2014
P C Agrawal
(Registered independent director Past Chairman of Aurangabad Chapter of ICSI Practicing Company Secretary at Aurangabad)
(8229 Points)
Replied 03 December 2014
A person providing professional service will not be a related party unless he falls in any of the clauses specified u/s 2(76).