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TMI BlogRelated party transactionsX X X X Extracts X X X X X X X X Extracts X X X X ..... nt 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: Provided that no contract or arrangement, in the case of a company having a paid-up share capital of not less than such amount, or transactions not exceeding such sums, as may be prescribed, shall be entered into except with the prior approval of the company by a 1 [resolution]: Provided further that no member of the company shall vote on such 1 [resolution], to approve any contract or arrangement which may be entered into by the company, if such member is a related party: 4 [Provided also that nothing contained in the second proviso shall apply to a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that is conducted as if they were unrelated, so that there is no conflict of interest. (2) Every contract or arrangement entered into under sub-section (1) shall be referred to in the Board's report to the shareholders along with the justification for entering into such contract or arrangement. (3) Where any contract or arrangement is entered into by a director or any other employee, without obtaining the consent of the Board or approval by a 3 [resolution] in the general meeting under sub-section (1) and if it is not ratified by the Board or, as the case may be, by the shareholders at a meeting within three months from the date on which such contract or arrangement was entered into, such contract or arrangement 5 [shall be voidable at ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it was read as, shall be voidable at the option of the Board 6. Substituted vide THE COMPANIES (AMENDMENT) ACT, 2020 dated 28-09-2020 before it was read as punishable with imprisonment for a term which may extend to one year or with fine which shall not be less than twenty-five thousand rupees but which may extend to five lakh rupees, or with both 7. Substituted vide THE COMPANIES (AMENDMENT) ACT, 2020 dated 28-09-2020 before it was read as punishable with fine which shall not be less than twenty-five thousand rupees but which may extend to five lakh rupees - - statute, statutory provisions legislation, law, enactment, Acts, Rules, Regulations, Taxation Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - ..... X X X X Extracts X X X X X X X X Extracts X X X X
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