Approval for rpt for listed companies
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This document discusses material related party transactions and other related party transactions under Indian accounting standards. It defines a material related party transaction as individually or collectively exceeding 5% of a company's annual turnover or 20% of the total turnover of the preceding financial year, whichever is higher. For material related party transactions, prior approval is required from both the audit committee and shareholders through a special resolution, while other related party transactions only require prior audit committee approval.
![What is material ?
Individually or collectively during
the financial year
5% annually turnover OR
20% TURNOVER [TO] which ever is
higher
TO based on preceding financial year.](https://image.slidesharecdn.com/approvalforrptforlistedcompanies-140709044811-phpapp01/85/Approval-for-rpt-for-listed-companies-3-320.jpg)
Approval for rpt for listed companies
- 2. Material related party transactions Other related party transactions
- 3. What is material ? Individually or collectively during the financial year 5% annually turnover OR 20% TURNOVER [TO] which ever is higher TO based on preceding financial year.
- 4. For material RPT PRIOR audit committee approval + PRIOR shareholders approval through special resolution
- 5. RPT PRIOR audit committee approval