What transactions are covered under Section 188 of Companies Act, 2013?
Leasing a property of any kind; Availing or the rendering services of any kind; Appointment of any agent for purchase/sale of goods, materials, services, or property; Such related party’s placement to any office or place of profit in which the company, its subsidiary company or associate entity.
What should be disclosed in AOC 2?
Details of contracts or arrangements or transactions not at arm’s length basis (a) Name(s) of the related party and nature of relationship (b) Nature of contracts/arrangements/transactions (c) Duration of the contracts/arrangements/transactions (d) Salient terms of the contracts or arrangements or transactions …
Who are covered under related party transaction?
Who is a Related Party?
| Sl no | Related Parties |
|---|---|
| 1. | A director or his relative (Relative means a member of the same HUF, husband, wife, father, stepfather, mother, stepmother, son, stepson, son’s wife, daughter, daughter’s husband, brother, stepbrother, sister, step-sister) |
| 2. | Key managerial personnel or his relative |
What is material related party transactions?
“Material Related Party Transactions” – a transaction with a Related Party shall be considered material if the transaction(s) to be entered into individually or taken together with previous transactions during a financial year, exceeds INR 1000 Crore or 10% of the annual consolidated turnover of the Company whichever …
Is section 188 applicable to government company?
Section 188 requires a company to obtain approval of the Board and of the members, in certain situations, prior to entering of any transaction or agreement with a related party. Section 188 is applicable to both private and public companies.
Is form AOC-2 mandatory?
This would essentially mean that transactions which are either not at arm’s length or not in ordinary course of business would need to be disclosed in board report along with justification. 25 July 2016 Then there is no required to disclose this transaction in AOC-2.
Can a company give interest free loan to related party?
As per the provisions of Section 186(2) of the Companies Act, 2013 read with the Rule 11 of the Companies (Meetings of Board and its Powers) Rules 2014, a company vide Power of the Board of Directors can give loan, give guarantee provide security in connection to the any loan to any person or other body corporate and …
Which company is required to place its financial statements on its website?
Listed company shall place its financial statement including consolidated financial statement on its website. Every company having subsidiary company shall place separate audited accounts of each of its subsidiary on the website.
Is 186 applicable to private companies?
Section 186(1) shall not apply on a Specified IFSC public and private company.
What shall be required for appointment of internal auditor?
The appointment of internal auditor can be done only by means of a resolution passed at the meeting of the Board as specified under rule 8 of the Companies (Meeting of Board and its Powers) Rules, 2014 and accordingly, the company is also required to file Form MGT-14 with the Registrar within 30 days from the date of …
What is Section 188 of Companies Act 2013?
Section 188 of CA 2013 provides for Related Party Transactions. Recently, we have discussed in detail section 187 (Investments of company to be held in its own name) of CA 2013. Today, we learn the provisions of section 188 of Companies Act 2013.
What is Chapter XII of the Companies Act 2013 (CA 2013)?
Chapter XII (Sections 173 – 195) of the Companies Act, 2013 (CA 2013) deals with the provisions related to meetings of board and its powers. Section 188 of CA 2013 provides for Related Party Transactions.
What is Section 187 of Companies Act 2013 (CA 2013)?
Chapter XII (Sections 173 – 195) of the Companies Act, 2013 (CA 2013) deals with the provisions related to meetings of board and its powers. Section 188 of CA 2013 provides for Related Party Transactions. Recently, we have discussed in detail section 187 (Investments of company to be held in its own name) of CA 2013.
Who is a related party under Companies Act 2013?
In that case, the person or entity is called a related party. Section 188 of Companies Act 2013 talks about Related Party Transactions that are applicable to both Private and Public Limited Company. Who is a related party? What is meant by related party transactions?