Section 188 of CA 2013 : Section 188: Related Party Transactions

CA 2013

JavaScript did not load properly

Some content might be missing or broken. Please try disabling content blockers or use a different browser like Chrome, Safari or Firefox.

Explanation using Example

Imagine a company named "DreamDecor Pvt. Ltd." which specializes in interior design. The company plans to purchase high-quality furniture for its new office space. The best offer comes from "ComfyFurnishings Ltd.", which is owned by the brother of DreamDecor's managing director.

Under Section 188 of The Companies Act, 2013, DreamDecor Pvt. Ltd. cannot simply proceed with this purchase because it involves a related party. First, the Board of Directors must give their consent through a resolution at a board meeting. They must also ensure that the transaction is at an arm's length, meaning it'...

Login to access all pages and read more content.

To disable ads and read rest of the premium content, subscribe to KanoonGPT Pro.

🚀 Special Offer! Enjoy 1 Year of Ad-Free Browsing with any subscription.
KanoonGPT is now faster and smarter, powered by upgraded servers.
Subscribe today and unlock all new features!
Update: Discover how KanoonGPT revolutionizes legal research! Watch our demo video on the homepage to see how you can chat with various legal sections using our innovative hybrid AI search. Enjoy free unlimited AI access for a limited time!
Update: Page bookmarking and open in new tab is now supported! Simply use your browser's bookmark manager to save this page for quick access later.
Update: All Judiciary Acts to be available within a week.

Download Digital Bare Acts on mobile or tablet with "Kanoon Library" app

Kanoon Library Android App - Play Store LinkKanoon Library iOS App - App Store Link