The Companies (Removal of Difficulties) Sixth Order 2014

The Companies (Removal of Difficulties) Sixth Order 2014

Ministry of Corporate Affairs has issued “The Companies (Removal of Difficulties) Sixth Order 2014, dated 24^th July, 2014. This ROD is to amend the definition of related party under sub section (76) of section 2 of the Companies Act, 2013. 

As per this ROD;

 “in sub-clause (iv) of clause (76) of section 2 of the Companies Act, 2013, after the word ‘manager’, the word “or his relative” shall be inserted”

After this amendment section 2(76) shall be as follow;

2(76) “related party”, with reference to a company, means—

                          i.            a director or his relative;

                       ii.             a key managerial personnel or his relative;

                     iii.            a firm, in which a director, manager or his relative is a partner;

                     iv.            a private company in which a director or manager or his relative is a member or director;

                        v.            a public company in which a director or manager is a director or holds along with his relatives, more than two per cent. of its paid-up share capital;

                     vi.            any body corporate whose Board of Directors, managing director or manager is accustomed to act in accordance with the advice, directions or instructions of a director or manager;

                   vii.            any person on whose advice, directions or instructions a director or

manager is accustomed to act:

Provided that nothing in sub-clauses (vi) and (vii) shall apply to the advice, directions or instructions given in a professional capacity;

                viii.            any company which is—

(A) a holding, subsidiary or an associate company of such company; or

(B) a subsidiary of a holding company to which it is also a subsidiary;

                      ix.             such other person as may be prescribed;

This amendment will come into effect from the date of its publication in official gazette. 

 

 

Thanks & Regards:

KASHIF ALI & ASSOCIATES

Company Secretaries

268, Business India Complex,

Uday Park, New Delhi-110049

Call us : +91 9718483209

 Mai: cs.kashifali@gmail.com

 

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