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Related party transactions in pvt ltd co.

Ankush Lawate (Company Secretary) (295 Points)

01 August 2014

Please tell me in case of Related party transactions, what could be done if in a private company :

1. having two shareholders and one is related party?

2. having two directors and in Board resolution, one director is interested director?

Regards,

Ankush

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1 Replies

Vandana J Doshi (Practising Company Secretary) (12562 Points)
Replied 02 August 2014

Hi Ankush, due to such problems, certain exemptions will be allowed to private company, the draft of which has already been approved by the Parliament....in few days, it is expected that MCA will notify the same.....and as far as i know, it contains certain exemptions w.r.t sec 188 of CA 2013.......So wait for the notification.......