Amendment In Threshold Limit Of Related Party Transactions

Published At: 08-Jan-2020

The Ministry of Corporate Affairs (MCA) has vide Notification dated 18th November, 2019 amended the Companies (Meetings of Board and its Powers) Rules, 2014 to modify the threshold limits for related party transactions under section 188, which if crossed, will trigger prior approval of members of company.


 

So, to summarize, in the above clauses, instead of keeping two or more threshold limits and making it subjective to a certain amount, MCA has now tried to simplify these threshold limits. This amendment is effective immediately from the date of notification of this amendment, i.e., from 18th November 2019.

 

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