CA, CS, CMA : Focusing only on receivables can miss significant risks embedded in related-party payables. A bilateral review reveals internal gr...
Company Law : The article explains when Audit Committee, Board, and shareholder approvals are required for Related Party Transactions. It provid...
Company Law : The article explains how Audit Committee, Board, and shareholder approvals apply to related party transactions under corporate law...
Company Law : The analysis clarified that shareholder protection is ensured through ultimate parent consolidation. Hence, intermediate companies...
SEBI : The updated Regulation 23 framework introduces turnover-linked thresholds for related party transactions. Listed companies must re...
Company Law : The Ministry of Corporate Affairs details measures to ensure transparency and prevent fund diversion in Related-Party Transactions...
SEBI : SEBI is consulting on amendments to LODR Regulations regarding Related Party Transactions. Proposals include new materiality thres...
Company Law : NFRA highlights auditor responsibilities in related party transactions, emphasizing compliance with Ind AS 24, SEBI regulations, a...
SEBI : SEBI seeks public feedback on strengthening secretarial compliance reports, auditor appointment criteria, and related party transa...
SEBI : What does ‘Where a transaction is undertaken between members of the consolidated entity (between the listed entity and its subsi...
Excise Duty : CESTAT Chandigarh held that the manufacturer and marketing company could not be treated as related persons under the Central Excis...
Income Tax : In a landmark ruling, the Delhi High Court held that government shareholders are not automatically considered related parties und...
SEBI : A detailed analysis of SAT Mumbai's decision to reduce SecureKloud Technologies' penalty for non-serious LODR violations, and its ...
Company Law : Bar of voting as per Section 188 of the Companies Act, 2013 on related parties operated only at the time of entering into a contra...
Income Tax : Commissioner issued a show cause notice under section 263 and ultimately passed impugned order; by that time the alleged domestic ...
Company Law : ROC Mumbai penalised a company and its directors for failing to disclose a related party loan transaction in the Board’s Report ...
Company Law : The authority penalized directors for executing related party transactions without fresh or valid approvals. It held that reliance...
Company Law : The company relied on old resolutions for ongoing related party transactions. The authority held that fresh approvals are mandator...
Company Law : The company continued related party transactions based on old approvals. The authority held that fresh approvals are mandatory, le...
Company Law : The issue involved non-compliance with approval requirements for related party transactions. The authority held that absence of Bo...
Key Takeaways of SEBI (Listing Obligations and Disclosure Requirements) (Third Amendment) Regulations, 2021 (LODR) SEBI vide its notification dated 03rd August, 2021 have amended Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 (“LODR”) for the third time in 2021. Such an amendment has been published in the official gazette on 03rd […]
Commissioner issued a show cause notice under section 263 and ultimately passed impugned order; by that time the alleged domestic transaction of purchase from related party was not required to be considered as a specified domestic transaction under section 92BA of the Act. It has been omitted, and therefore, no proceedings under section 263 should have been undertaken by the ld. Commissioner.
How to determine meaning of Ordinary Course of Business under Related party Transactions? Who determines that the transaction with related party is in the ordinary course of business? Is it the Board or the Audit Committee? ♦ The Act does not clearly lay down tests for determining whether a transaction is in the ordinary course […]
If the office or place of profit is held by the director and obtains from the company anything by way of remuneration to which he is entitled as a director, whether as salary, fees, commission, perquisites, the right to occupy free of rent any premises as a place of residence or otherwise.
Section 188 of the Companies Act, 2013 (the Act) specifically deals with Related Party Transactions which further captivate other provisions of the Act including Section 166, 173, 177, and 184. In this article, an attempt is made to explain and amplify the coverage, scope, and intent of ‘Related Party Transactions.
According to Section 2(76) of The Companies Act, 2013, related party”, with reference to the company means: (i) a director or his relatives (ii) a Key Managerial personnel or his relative (iii) a firm, in which a director, manager or his relative is a partner (iv) a private company in which a director or manager […]
This article is one of the very necessary tool in understanding the aspects of section 188 of companies act, 2013 also termed as RELATED PARTY TRANSACTION. In this article, you will be learning about some basic principles, law & rules applicable to the transactions entered by the company with their related parties, so let’s begin, […]
How to Identify whether the proposed transaction is a Related Party Transaction u/s 188 of Companies Act, 2013 or not? 1st Stage (Preliminary test) 1. Is it a transaction (Contract or arrangement) that falls under Section 188(1)(a) to (g) of the Companies Act, 2013 (the Act)?; AND 2. Is it a related Party in terms […]
Question 1: When to submit disclosure of related party transaction? Answer: As per regulation 23(9), the listed entity shall submit within 30 days from the date of publication of financial results on half yearly basis.
Introduction A company, in the course of conduct of its business, enters into various transactions with different parties, including its related parties. Companies also carry on their activities through subsidiary companies and associate companies. Accordingly, related party relationships are a normal feature of business. Due to this relationship, related parties may enter into transactions that […]
