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  © 2013 KPMG, an Indian Partnership and a member firm of the KP MG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.  KPMG FLASH NEWS KPMG IN INDIA New Companies Act, 2013 - Insight Ser ies  – Vol V 24 September 2013 Vol-V: Directors including Related Party Transactions and General Administration Executive Summary R ela ted P arty Trans action requir ed t o be ap proved by the B oard  Scope significantly enlarged; however, transactions entered in ordinary course of business at arm’s length terms are not covered.  Central Government approval removed.  Special resolution at general meeting required for prescribed transactions. Loan to Dir ect ors and Ot her S pecified Pers ons  Prohibited, unless allowed under other provisions of the Act.  Requirement of Central Government approval removed.   Allowable subject to conditions including shareholders’ approval.

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New Companies Act 2013 Insight Series V

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