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Related party transactions

Ashok Jain (Director) (49 Points)

11 January 2015

Can pvt ltd co sell goods to its director's partnership firm.

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5 Replies

hiteshjain964@gmail.com (mumbai) (59 Points)
Replied 11 January 2015

Yes mostly you can do it. But make sure it is done at FMV. Disclose the same in related party transaction.

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CS MOHIT SALUJA (PRACTICING CS Jalandhar 9914558709) (5155 Points)
Replied 11 January 2015

Yes the company can do but need to follow section 184 and section 188 before the same

GIRISH KHATEANI (student) (21 Points)
Replied 11 January 2015

Disclosure is required......transaction may not result into the director benefit n should be in the interest of the company

Nayak (Associate Company Secretary) (148 Points)
Replied 12 January 2015

Yeah. But ensure that if total sales exceeds 10% turnover as per latest audited balancehseet,then share holders approvalby way of special resolution required.

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PREM kasi (Internal audit) (69 Points)
Replied 12 January 2015

SEC 184 APPLIES WHEN THE DIRECTORE IS KMP FOR OTHER COMPANY OR WHEN HE HOLDS 2% OR MORE PAID UP CAPITAL OF OTHER COMPANY....INTEREST SHOULD BE DISCLOSED IN FORM-MBP-1 TO THE COMPANY.