MCA has issued notification Dated 18th November 2019, to Amend Rule 15 (Condition of related party transaction) of The Companies (Meetings of Board and its Powers) Rules, 2014.
1. Rule 15(3)(i) and 15(3)(ii)– The words “or rupees one hundred crore, whichever is lower”, shall be omitted.
Now Rule 15(3)(i) read as:-
Sale, purchase or supply of any goods or material, directly or through appointment of agent, amounting to ten percent or more of the turnover of the company or rupees one hundred crore, whichever is lower , as mentioned in Section 188(1)(b) and Section 188(1)(c);
Now Rule 15(3)(ii) read as:-
Selling or otherwise disposing of or buying property of any kind, directly or through appointment of agent, amounting to ten percentor more] of net worth of the company or rupees one hundred crore, whichever is lower as mentioned in Section 188(1)(b) and Section 188(1)(c);
2. Rule 15(3)(iii)– The words “amounting to ten per cent or more of the net worth of the company or ten per cent or more of turnover of the company or rupees one hundred crore, whichever is lower”, the words “amounting to ten per cent or more of the turnover of the company” shall be substituted
Now Rule 15(3)(iii) read as:-
Leasing of property any kind amounting to ten per cent or more of the net worth of the company or ten per cent or more of turnover of the company or rupees one hundred crore, whichever is lower amounting to ten per cent or more of the turnover of the company, as mentioned in Section 188(1)(c).
3. Rule 15(3)(iv)– the words “or rupees fifty crore, whichever is lower”, shall be omitted.
Now Rule 15(3)(iv) read as:-
Availing or rendering of any services, directly or through appointment of agent, amounting to ten percent or more of the turnover of the company or rupees fifty crore, whichever is lower as mentioned in Section 188(1)(d).