RelatedPartyDesk

What it is

For a hospital or clinic run as a company. Each related party is kept from the director’s or key managerial person’s own disclosure, with the limb of section 2(76) of the Companies Act, 2013 it falls under and the relationship in words, until it ceases. Every contract or arrangement with one — goods, property, a lease, services, an agent, an office of profit — is logged with its terms, the amount, and whether it is in the ordinary course of business and at arm’s length, as the company assesses it. The register then says which approval it still needs: the audit committee’s where the company has one (s.177(4)(iv)), the board’s unless it is both ordinary-course and arm’s-length (s.188(1)), with the interested director abstaining, and the shareholders’ where the company secretary records that the Rule 15(3) thresholds are crossed — no threshold ships. A consent that came after the day of the transaction, or has not come, shows the three months s.188(3) allows to ratify it. An entry is kept as recorded and voided with a reason, never edited, so the register a statutory audit asks for already exists.

Who uses it

Quality officer — the demo profile it is best tried as

Where it opens

Compliance › Related parties /related-parties

Permission

relatedparty.read

AI in RelatedPartyDesk