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Related party transaction

samir samal (managing partner) (25 Points)

26 July 2018

X is a government company with 100% holding by a state government. It has an arrangement with state government for providing service to state government and get some fees. The directors are all govt officers and are nominated by state government. whether it is a related party and wheather fall under section 184(1) and/or section 188 , 189 of Companies Act 2013?

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1 Replies

CA Sunil Kumar (Chartered Accountant) (4524 Points)
Replied 26 July 2018

Section 184(1) is not applicable to a government company.
shall not apply to
a) a Government company in respect of
contracts or arrangements entered into by it
with any other Government company;
(b) a Government company, other than a
listed company, in respect of contracts or
arrangements other than those referred to in
clause (a) in case such company obtains
approval of Admin. Ministry of Central
Government which is administratively in
charge of the company, or, State Govt. before
entering into such contract or arrangement.