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Def. Lex-O-Pedia
How Do Related-Party Transactions Intersect With Money-Laundering Law?
A related-party transaction is a governance matter until it becomes a crime. When an RPT is a sham — inflated invoicing, circular flows, shell-entity payments — it can generate proceeds of crime and pull the transaction into the Prevention of Money-Laundering Act, exposing the company to a second, c
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Def. Lex-O-Pedia
Does a Related Party Transaction Require Filing Form MGT-14 With the ROC?
A related party transaction under Section 188 does not itself trigger MGT-14. Whether the form must be filed turns on the type of resolution passed — special versus ordinary, and board versus shareholder — and, for board resolutions, on whether the company is public or private.
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Def. Lex-O-Pedia
Can CSR Funds Flow Through a Trust Connected to the Company's Directors?
A registered trust whose trustees are the company's own directors can lawfully implement CSR, but engaging a related business to run the activity sits in a regulatory grey zone. What Rule 4, Section 188 and MCA guidance permit, and where the enforcement risk lies.
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Def. Lex-O-Pedia
What is the legal framework and economic impact of ancillarisation?
Ancillarisation fosters a collaborative ecosystem, linking SMEs and large firms for efficiency. Governed by the Companies Act, 2013 and MSMED Act, 2006, it supports economic growth and industrial synergy.
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