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Related Party Transaction - 568

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Related Party Transaction This is one of most important section of Companies Act. If company is entering into any transaction, contract, arrangement etc. Company have to check and comply with provision of this section. Whenever we concerned about compliances of related party transaction, we have to check following sections: 1.      Section 2(76) – Definition of Related Party Transaction 2.      Section 188- Related Party Transaction. 3.      Section 189- Register of transaction in which director are interested Therefore, in general word one can opine that, combined reading/ compliance of above mentioned 3 sections are required to successfully enter into contract/ arrangement with Related Party . Let’s start detail study on Section 188 Definition of Related Party and study on same is covered after study of 188: Section 188(1) states about contract or arrangement with related party. Compliance of this section is applicable only for the transaction men