Lately, abusive Related Party Transactions have become a common term used to signify the tactics adopted by majority shareholders, who in turn are related to the company, to divert the funds of the company. Thus, what rightfully should be used for enhancing the wealth of the shareholders gets diverted to benefit a handful of shareholders controlling majority of the decisions of the company. With the new Companies Act, 2013 and its Rules as well as the new Clause 49 of the Listing Agreement in force, an effort has been made to curb the abuse of Related Party Transaction for personal gain of majority shareholders. There has been a major change in the definition as well as compliances for Related Party Transactions. This article is your guide through the entire concept, compliances, disclosures and changes in the provisions of Related Party Transactions in the Companies Act, 2013 and Clause 49 of the SEBI (Securities and Exchange Board of India) Listing Agreement.

The Companies Act, 2013 as well as the new Clause 49 of the Listing Agreement (applicable from 1st October, 2014) have brought about immense additions in the concept, requirements, roles, duties and liabilities of Independent Directors. In the wake of recent corporate scams that India has witnessed and the subsequent increase in the number of resignations by Independent Directors from the boards of companies, the revamp of the existing corporate regime’s concept of independent Director is a welcome change. This article is a 360⁰ guide on all provisions relating to Independent Directors under the Companies Act, 2013 and Clause 49 of the Listing Agreement.