Related party transaction approval requirement under new companies act 2013.

1. Ganesan
ganesanraman2012@gmail.com

2.  RPT is ARM’S LENGTH and ordinary
course of business
 Only audit committee approval.

3.  RPT is NOT ARM’S LENGTH and
NOT ordinary course of business
 Audit committee approval +
 Prior board approval +
 Prior shareholder approval

4.  If paid-up share capital > 10 crores
 Or transactions limit exceed
prescribed limit
 ALP is between unrelated and no
conflict of interest
 Disclosure is details of contract/
arrangement /transactions.