: (1) Except as otherwise provided in this section, a public company shall, without the approval of the general meeting, deal with any of its directors or its close relatives or basic shareholders or any other firm, company in which the directors, close relatives of directors or basic shareholders own basic shares. or other organized organization or without the approval of the general meeting of its main company, the subsidiary company cannot do meaningful business with the director of the main company or his close relatives or basic shareholders. Explanation: For the purposes of this section, "meaningful transaction" means purchase, sale, transaction, contract lease transaction of any goods or services, which in case of transaction is less than one lakh rupees or five percent of the total assets of the company, whichever is less. The term also refers to annual turnover of one hundred and twenty thousand or more.
(2) In case of any transaction contrary to sub-section (1), any amount or profit received directly or indirectly from such transaction shall be returned to the company and if there is any loss or damage to the company as a result of such transaction, the person who benefited from such transaction shall also pay compensation. .
(3) Notwithstanding anything contained elsewhere in this section, the provision of sub-section (1) shall not apply in relation to the property acquired as follows:-
(a) when the parent company acquires such property from its wholly-owned subsidiary,
(b) When a wholly owned subsidiary company of the parent company acquires such property from another wholly owned subsidiary company of the same parent company,
(c) When trading at prevailing market price in the course of regular commercial transactions of the company.