Related Parties

The Board Members shall make disclosure of related party transactions to the Board of Directors and shall not conduct company’s business with a relative or any other person or any firm, company, association in which the relative or other person is associated with. In case of a related party transaction, they must fully disclose the nature of the transaction to the Board of Directors and while dealing no preferential treatment be given to any party.

Meaning of Relatives:-

As per Section 6 of the Companies Act, 1956, a person shall be deemed to be a relative of another if, and only if,
(a) they are members of a Hindu Undivided Family; or
(b) they are husband and wife; or
(c) the one is related to the other in the manner indicated in Schedule IA.

SCHEDULE IA

1. Father
2. Mother (including step-mother)
3. Son (including step-son)
4. Son’s wife
5. Daughter (including step-daughter)
6. Father’s father
7. Father’s mother
8. Mother’s mother
9. Mother’s father
10. Son’s son
11. Son’s son’s wife
12. Son’s daughter
13. Son’s daughter’s husband
14. Daughter’s husband
15. Daughter’s son
16. Daughter’s son’s wife
17. Daughter’s daughter
18. Daughter’s daughter’s husband
19. Brother (including step-brother)
20. Brother’s wife
21. Sister (including step-sister)
22. Sister’s husband