Related Party Transactions Under the Companies Act, 2013: The Governance Gap India Cannot Afford to Ignore

Introduction In the field of Indian corporate law, related party transactions (“RPTs”) are in a grey area. On the other hand, group corporate structures, such as holding companies, subsidiaries and associate companies, inevitably involve internal transactions with other members of the group, for operational efficiency and sharing of resources. However, at the same time, RPTs are the most potent tool in creating the diversion of corporate funds from minority shareholders to controlling...