Concise chart on Related Party Transactions

related

Particulars Company Law Requirement Listing Agreement Requirement Remarks

Sale, Purchase or Supply of any goods, Material, etc

10% of turnover

OR

Rs. 100 crores,

whichever is less

1. All Related Party Transactions upto 10% of CFS turnover per related party

2. Material Related Party Transactions beyond 10% of CFS turnover per related party

1. Prior Audit Committee approval + Board Meeting approval if transaction is within limit

2. Beyond this limit prior shareholders approval by special resolution and related party cannot vote

Selling or Buying of Property 10% of networthOR

Rs. 100 crores,

whichever is less

1. All Related Party Transactions upto 10% of CFS turnover per related party

2. Material Related Party Transactions beyond 10% of CFS turnover per related party

1. Prior Audit Committee approval + Board Meeting approval if transaction is within limit

2. Beyond this limit prior shareholders approval by special resolution and related party cannot vote

Leasing of any Property 10% of turnoverOR

10% of networth

OR

Rs. 100 crores,

whichever is less

1. All Related Party Transactions upto 10% of CFS turnover per related party

2. Material Related Party Transactions beyond 10% of CFS turnover per related party

1. Prior Audit Committee approval + Board Meeting approval if transaction is within limit

2. Beyond this limit prior shareholders approval by special resolution and related party cannot vote

Rendering / Availing any Services 10% of turnoverOR

Rs. 50 crores,

whichever is less

1. All Related Party Transactions upto 10% of CFS turnover per related party2. Material Related Party Transactions beyond 10% of CFS turnover per related party 1. Prior Audit Committee approval + Board Meeting approval if transaction is within limit2. Beyond this limit prior shareholders approval by special resolution and related party cannot vote

Note:

1. The reference of financials is as per last audited financial statements.

2. Proposal needs previous approval of Audit Committee.

3. Thereafter proposal needs previous approval of Board Meeting in terms of approval of Audit Committee.

(Compiled by ACS Deep Vaghela)

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Category : Company Law (4013)
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Tags : Companies Act (2477) Companies Act 2013 (2250)

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