ABC Limited and PQR Limited both are Subsidiary of the same Company XYZ Limited. Both the company are completely run by different directors and management and having no inter-company shareholding. Whether ABC Limited and PQR Limited are related parties?

Mr.A is the promoter of ABC Limited and holding 49% of shares in ABC Limited. He is not holding any position in the company. Whether Mr.A is the related party of ABC Limited?

Mr.A is the Director of ABC Limited. He is appointed as a software expert in the holding company of ABC Limited at the monthly remuneration of Rs.5,00,000/-. Whether this transaction is related party transaction?

Whether giving loans to subsidiary company amounts to related party transaction?

ABC Limited are holding 1000 shares in PQR Limited. Mr.A, the brother of the CFO of ABC Limited acquired the shares from ABC Limited. Whether this transaction is Related Party transaction?

ABC Limited allotted shares to Mr.A director of the company on preferential allotment basis. Whether such transaction is related party transaction?

ABC Limited hires a relative of a director with a monthly salary of Rs.5 Lakh. Whether this transaction is related party transaction?      

ABC Limited is a Listed Company with a consolidated turnover of around Rs.15,000/- crores. ABC Limited has formed many subsidiaries to procure various raw-material from the market. XYZ Limited being one of the subsidiary of ABC Limited has supplied raw material worth of Rs.2000 crores in a series of tranches over a year in the ordinary course of business and at arm’s length basis. Whether any approval is required or not or if yes, then what all approvals are required?

i.      Audit Committee Approval

ii.     Board Approval

iii.   Shareholders’ Approval

iv.   No Approval is required

1. Mr. A is the Independent Director of ABC Limited which has subsidiary company namely XYZ limited. Whether Mr.A is the related party of XYZ Limited?