Explaining the meaning of the term 'related party' in relation to a company under the provisions of the Companies Act, 2013, decide whether the following shall be treated as 'related party': (ii) Fair Ltd. is an associat

Fair Limited is a 'related party' within the meaning of the term, as defined under section 2(76), since the company is an associate company of the company in question i.e. Mohan Limited. Further, in accordance with the provisions of the Companies Act, 2013, as contained under Section 188(1), no company shall enter into any contract or arrangement with a related with respect to the matters as provided in this sub-section. Accordingly, the company in question cannot enter into any contract for neither leasing of the company's property nor for sale of any goods produced by the company except by complying with procedure as prescribed in Section 188 of the Companies Act, 2013 and the relevant rules made thereunder.