Finish clause in RPT smoothly

Aug 6th, 2022
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How to Finish clause in RPT

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in this video we focus on one very specific type of clause and that is an exemption clause an exemption clause is a term of a contract that tries to do one of two things it will either try to limit liability to a set financial amount or alternatively it will try to exclude liability for certain types of loss so property damage or consequential loss and so on you can have them mixed together but they ultimately do boil down into one of those two things a limitation or an exclusion so what were going to look at apart from defining them terms in a bit more detail is what governs the enforceability of an exemption clause as you can imagine that they are quite onerous things to sign up to so they are subject to certain rules that the drafter must follow to ensure that they are enforceable and they must make sure that theyre incorporated into the agreement well talk about the red hand rule from lord denning they must be validly constructed so if youre trying to exclude loss for say negli

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In order to justify the arms length nature of the related-party transactions, the parties to such business transaction must submit a series of documents evidencing the market value of the transactions at the time they were carried out.
1. Omnibus approval shall be granting only for those transaction of which value not exceeding 1 crore per transaction. 2. Omnibus approval shall be valid only for a period of 1 financial year and after expiry of such financial year need to take fresh approval for such transaction.
As per SEBI LODR, 2015 In case of any other company, such director / employee may be punishable with fine of `25,000 `5,00,000. Non-compliance with disclosure of related party transactions on consolidated basis. ₹ 5,000 per day.
Indian Accounting Standard 24 requires disclosures to be made by a parent entity regarding its transactions with associates, joint ventures or subsidiaries, collectively referred to as Related party. Hence related party refers to an entity or person that is related to the reporting entity.
10% of annual consolidated turnover of the listed entity or INR 1,000 Crores, whichever is lower; or. 5% of annual consolidated turnover of the listed entity for a transaction involving payments made to a related party for brand usage or royalty.
Arms Length Transaction means a transaction between two Related Parties that is conducted as if they were unrelated, so that there is no conflict of interest.
10% of annual consolidated turnover of the listed entity or INR 1,000 Crores, whichever is lower; or. 5% of annual consolidated turnover of the listed entity for a transaction involving payments made to a related party for brand usage or royalty.
Section 177 and 188 of the Companies Act, 2013 read with Companies (Meetings of Board and its Powers) Rules, 2014 provides the mechanism for dealing with Related Party Transactions of a Company. It also provides for certain compliance requirements for entering into such transactions.

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