Ministry of Corporate Affairs has issued clarification on transactions/ matters following under section 188 (Related Party Transactions).
It has clarified that:
1. For non-voting by the interested shareholder: The shareholders who are related party for the contract or arrangement for which resolution is proposed/ to be passed. Only those shareholders cant vote on the matter.
2. Transaction arising out of amalgamation and reconstruction under the Companies Act, 1956 shall not attract provisions of section 188 of CA, 2013.
3. Contracts entered into by the Companies in compliance under provisions of section 297 of the CA, 1956 shall not need further fresh approvals, until there are any modifications to those contracts.
http://www.mca.gov.in/Ministry/pdf/Circular_No_30_17072014.pdf
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