<h1>Circular Clarifies 'Related Party' Under Companies Act 2013; Exemptions for Pre-Existing Contracts and Certain Transactions Explained.</h1> The government issued a circular on July 17, 2014, regarding related party transactions under the Companies Act, 2013. It clarifies that the term 'related party' in section 188(1) refers only to parties relevant to the specific contract or arrangement requiring a special resolution. Contracts compliant with section 297 of the Companies Act, 1956, before section 188's commencement, do not need fresh approval until the original term expires. Additionally, transactions from compromises, arrangements, and amalgamations under the Companies Acts of 1956 or 2013 are exempt from section 188 provisions. This information was provided by the Ministry of Corporate Affairs in a Lok Sabha response.