As per COA 2013 a private company in which a director or manager or his relative is a member or director is considered as a related party.If they are a director, the case is clear. For public companies, the limit is 2% of shareholding.
But what is the limit in shareholding to be considered as a member of the private company? Whether owning a single share of small number of shares qualifies as being member, thus making said company a related party of the first company?
Related party - Pvt Ltd Company in which Director or relative is a member or Director
V R Ganesan (Proprietor) (3 Points)
05 August 2022