Independent Directors of Holding Company not to be regarded related party of the Subsidiary

Rule 3 of the Companies (Specification of definitions details) Rules, 2014 further provides that a director or key managerial personnel of the holding company or his relative with reference to a company, shall be deemed to be a related party.

The rule 3 has been amended as under to take independent directors of the holding company out of the related party scope of the subsidiary company.

To be Published in the Gazette of India, Extraordinary, Part II, Section 3, Subsection (i)

Government of India
Ministry of Corporate Affairs
NOTIFICATION

New Delhi, 17 ^th July, 2014

G.S.R……… In exercise of the powers conferred by sub-clause (ix) of clause (76) of section 2, read with sub-sections (1) and (2) of section 469 of the Companies Act, 2013 (18 of 2013), the Central Government hereby makes the following rules, namely:-

1. (1) These rules may be called the Companies (Specification of definitions details) Amendment Rules,2014.

(2) They shall come into force on the date of their publication in the Official Gazette.

2. In the Companies (Specification of definitions details) Rules, 2014, in rule 3, after the words ‘a director' the words ‘other than an independent director' shall be inserted.

[F. No. 01/13/2013(Part-I) CL-V]
Amardeep Singh Bhatia
Joint Secretary

Note: The principal rules were published in the gazette of India, Extraordinary, Part-II, Section 3, sub-section (i) vide number G.S.R. 238(E), dated the 31st March, 2014.