Related Party Transaction Approval

Legal Reference: Companies Act 2013, Section 188; SEBI LODR Regulation 23

Purpose

This workflow legally orchestrates and tracks the complete sequential execution process for Related Party Transaction Approval.

Execution Steps

Phase 1: Identification & Disclosure

• Identify if counterparty is a related party under Section 2(76)
• Check if transaction exceeds materiality thresholds
• Collect Form MBP-1 interest disclosure from involved director
• Generates Document: Disclosure — Collect Form MBP-1 interest disclosure from involved director

Phase 2: Approval Process

• Obtain Audit Committee approval
• Pass Board Resolution with interested director abstaining
• Generates Document: Board Resolution — Pass Board Resolution with interested director abstaining
• Obtain shareholder approval via Ordinary Resolution (if material)
• File Form AOC-2 with Board Report
• Generates Document: MCA Form — File Form AOC-2 with Board Report