Related Party Mapping
Identification and mapping of related parties and interests under the applicable Companies Act and related regulatory definitions.
Corporate Governance & Approvals · Hubballi & India
Related Party Transactions and Board Approval Governance
Transactions involving directors, promoters, related persons and connected entities may require disclosure, abstention, board or member approval and.
Scope of work
What this Service Covers
Transactions involving directors, promoters, related persons and connected entities may require disclosure, abstention, board or member approval and financial-statement reporting. The legal treatment depends on definitions, thresholds, the nature of the contract and exemptions. The firm supports corporate-governance analysis and approval records rather than replacing the financial auditor's reporting responsibilities.
Approvals & Exemptions
Review of proposed contracts, ordinary-course and arm's-length considerations, board and shareholder approval requirements and registers.
Documentation & Disclosures
Documentation of director disclosures, resolutions, abstentions, contracts and statutory return or board-report coordination.
Group Company Governance
Related-party governance for holding/subsidiary structures and, where relevant, listed-company SEBI requirements.
Process
Professional Work Process
The following sequence describes the usual documentation and review stages for this type of matter.
01
Confirm the corporate facts
Review entity particulars, shareholding, management and proposed events.
02
Identify legal requirements
Map applicable approvals, forms, registers and current rules.
03
Prepare documentary trail
Compile accurate notices, resolutions, statutory records and form inputs.
04
Reconcile and close
Check filing acknowledgements against the underlying corporate record.
Common questions
Frequently Asked Questions
Does every related-party transaction require an ordinary resolution of shareholders?
No. Section 188 distinguishes board approval from member approval according to the type of contract, prescribed thresholds and available exemptions, including ordinary-course and arm’s-length conditions. Section 184 director-interest disclosure and other provisions may still apply independently. Legal reference: Companies Act, 2013, ss. 184, 188; Companies (Meetings of Board and its Powers) Rules, 2014. Primary / professional source
Are a director loan and a service contract tested under the same section?
No. A company taking a loan from a director, lending to a director, and contracting for goods/services are different transactions. Sections 73/76, 185/186 and 188, the deposit rules and disclosure requirements should be separately tested according to actual facts. Legal reference: Companies Act, 2013, ss. 73, 185, 186, 188. Primary / professional source
Does Audit Committee approval matter if section 188 member approval is not required?
It can. Section 177 requires specified classes of companies to constitute an Audit Committee and provides a separate RPT approval framework. Listed entities must additionally consider SEBI LODR regulation 23 and its materiality and approval rules. Legal reference: Companies Act, 2013, ss. 177, 188; SEBI LODR, reg. 23. Primary / professional source
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Professional correspondence
Office & contact details
Enquiries regarding the practice and its areas of work may be addressed to the firm through the published contact details.