The MCA, on November 18, 2019, notified the Companies (Meetings
of Board and its Powers) Second Amendment Rules, 2019
("Amendment Rules") (accessible here).
The aforesaid rules revised the following thresholds provided under
Rule 15 of the Companies (Meetings of Board and its Powers) Rules,
2014 ("Rules") relating to related party
transactions. In terms of Section 188 of the Companies Act, 2013
("Companies Act"), where a company
proposes to enter into a related party transaction and the monetary
value of such transaction exceeds certain thresholds specified in
the Rules, then the company concerned is required to obtain prior
approval from its shareholders for effecting such transaction. The
aforesaid thresholds have been amended vide the Amendment Rules as
follows:
