Who are Related Party under Companies Act 2013

As per Sec­tion 2(76) of Com­pa­nies Act 2013 relat­ed par­ty, with ref­er­ence to a com­pa­ny, means-

(i) a direc­tor or his rel­a­tive; (Def­i­n­i­tion of Rel­a­tive defined later)

(ii) a key man­age­r­i­al per­son­nel or his relative;

(iii) a firm, in which a direc­tor, man­ag­er or his rel­a­tive is a partner;

(iv) a pri­vate com­pa­ny in which a direc­tor or man­ag­er is a mem­ber or director;

(v) a pub­lic com­pa­ny in which a direc­tor or man­ag­er is a direc­tor or holds along with his rel­a­tives, more than two per cent. of its paid-up share capital;

(vi) any body cor­po­rate whose Board of Direc­tors, man­ag­ing direc­tor or man­ag­er is accus­tomed to act in accor­dance with the advice, direc­tions or instruc­tions of a direc­tor or manager;

(vii) any per­son on whose advice, direc­tions or instruc­tions a direc­tor or man­ag­er is accus­tomed to act: Pro­vid­ed that noth­ing in sub-claus­es (vi) and (vii) shall apply to the advice, direc­tions or instruc­tions giv­en in a pro­fes­sion­al capacity;

(viii) any com­pa­ny which is—
(A) a hold­ing, sub­sidiary or an asso­ciate com­pa­ny of such com­pa­ny; or
(B) a sub­sidiary of a hold­ing com­pa­ny to which it is also a subsidiary;

(ix) such oth­er per­son as may be prescribed;

‘‘rel­a­tive’’, with ref­er­ence to any per­son, means any one who is relat­ed to anoth­er, if—

(i) they are mem­bers of a Hin­du Undi­vid­ed Family;

(ii) they are hus­band and wife; or

(iii) one per­son is relat­ed to the oth­er in such man­ner as may be prescribed;