List out the information to be provided by the management of the listed entity to the shareholders for seeking their approval of Related Party Transactions.
CS Professional · Corporate Funding & Listings in Stock Exchanges · PYQS · December 2022
List out the information to be provided by the management of the listed entity to the shareholders for seeking their approval of Related Party Transactions.
Answer & Explanation:
Information to be provided by the management of the listed entity to the shareholders for seeking their approval of Related Party Transactions (RPT) The notice being sent to the shareholders seeking approval for any proposed RPT shall, in addition to the requirements under the Companies Act, 2013, include the following information as a part of the explanatory statement: A summary of the information provided by the management of the listed entity to the audit committee Justification for why the proposed transaction is in the interest of the listed entity; Where the transaction relates to any loans, inter-corporate deposits, advances or investments made or given by the listed entity or its subsidiary, the details specified under the requirement of disclosing source of funds and cost of funds shall not be applicable to listed banks/NBFCs. A statement that the valuation or other external report, if any, relied upon by the listed entity in relation to the proposed transaction will be made available through the registered email address of the shareholders; Percentage of the counter-party's annual consolidated turnover that is represented by the value of the proposed RPT, on a voluntary basis; Any other information that may be relevant.
Topics: Related Party Transactions (RPT)
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