Approval of the members under section 188 of the companies act shall be obtained by way of
Answers
Explanation:
Section 188 of Companies Act 2013 is about Related Party Transactions and applicable to both Private and Public limited company and is applicable from 1St April 2014.
a) A Director or A key Managerial Person or their relative.
b) A firm in which Director, Manager or his relative is a partner.
Explanation:
188. Related party transactions
(1) Except with the consent of the Board of Directors given by a resolution at a
meeting of the Board and subject to such conditions as may be prescribed, no company shall
enter into any contract or arrangement with a related party with respect to—
(a) sale, purchase or supply of any goods or materials;
(b) selling or otherwise disposing of, or buying, property of any kind;
(c) leasing of property of any kind;
(d) availing or rendering of any services;
(e) appointment of any agent for purchase or sale of goods, materials, services
or property;
(f) such related party's appointment to any office or place of profit in the company,
its subsidiary company or associate company; and
(g) underwriting the subscription of any securities or derivatives thereof, of the
company: