08-Jan-2020 Amendment In Threshold Limit Of Related Party Transactions
gst gst-impact goods-service-taxWith a view to simplifying the provisions relating to related party transactions, the Ministry of Corporate Affairs (MCA) had on 18th day of November 2019 issued a notification concerning enforcement of Companies (Meeting of Board and its Powers) Second Amendment Rules, 2019 vide which it has amended the threshold limits in sub-rule 3 of rule 15
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.