Section 192 of the said Act deals with restriction on non-cash transactions
involving directors or persons connected with them. The section prohibits the
company from entering into such types of arrangements unless it is an
arrangement by which the company acquires or is to acquire assets for
consideration other than cash, from such director or person so connected.
In the instant case, RPS Ltd. has entered into non-cash transactions with Mr.
Rahul, son of director, which is an arrangement by which RPS Ltd. is in
process to acquire assets for consideration other than cash. In the above
situation, the provisions of section 192 of Companies Act, 2013 have been
No such exception provision is there in Bare Act of Sec 192
Why is it written so in RTP?
How Sec 192 is complied without prior approval in general meeting?
FROM BARE ACT
192. (1) No company shall enter into an arrangement by which—
a director of the company or its holding, subsidiary or associate company or a person connected with him acquires or is to acquire assets for consideration other than cash, from the company; or
the company acquires or is to acquire assets for consideration other than cash, from such director or person so connected,
unless prior approval for such arrangement is accorded by a resolution of the company in general meeting and if the director or connected person is a director of its holding company, approval under this sub-section shall also be required to be obtained by passing a resolution in general meeting of the holding company.
Conclusion :- in this case sec 192 is applicable to the case. auditor need to check whether reoultion was passed and then comment whether 192 is complied or not