Question

ABC Ltd. enters into a contract with a director’s relative for supply of raw material worth Rs. 1.2 crore. Paid-up share capital is Rs. 5 crore. As per Companies Act 2013, what compliance is required?

A No compliance, transaction is valid.
B Must be approved by shareholders through special resolution.
C Board approval is sufficient.
D Must be reported only in financial statements.
E Must be approved by independent directors only.
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