Related party transactions: board approval and disclosure required; non-compliance leads to voidability, indemnity and penalties. Related party contracts and arrangements touching sale, purchase, lease, services, agency, offices or places of profit, or underwriting require Board resolution and prescribed conditions; larger transactions also need company approval by special resolution with related-party members barred from voting. Ordinary course arm's length transactions are exempt. Such contracts must be reported in the Board's report with justification. Unauthorised contracts not ratified within three months are voidable at the Board's option, and directors who entered into or authorised violations must indemnify the company and face criminal and monetary penalties, including enhanced sanctions for listed company directors.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Related party transactions: board approval and disclosure required; non-compliance leads to voidability, indemnity and penalties.
Related party contracts and arrangements touching sale, purchase, lease, services, agency, offices or places of profit, or underwriting require Board resolution and prescribed conditions; larger transactions also need company approval by special resolution with related-party members barred from voting. Ordinary course arm's length transactions are exempt. Such contracts must be reported in the Board's report with justification. Unauthorised contracts not ratified within three months are voidable at the Board's option, and directors who entered into or authorised violations must indemnify the company and face criminal and monetary penalties, including enhanced sanctions for listed company directors.
Full Summary is available for active users!
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
of 
TaxTMI 
