Arm’s Length Basis definition

Arm’s Length Basis means a transaction between two related parties that is conducted as if they were unrelated, so that there is no conflict of interest.

Arm’s Length Basis means a transaction between two Persons that is carried out on terms no less favorable than the terms on which the transaction would be carried out by unrelated or unaffiliated Persons, acting as a willing buyer and a willing seller, and each acting in his own self-interest.

Arm’s Length Basis means a transaction between two related parties that is conducted as if they were unrelated, so that there is no conflict of interest. For determination of Arm’s Length basis, guidance may be taken from provisions of Transfer Pricing under Income Tax Act, 1961.

Examples of Arm’s Length Basis in a sentence

• All the related party transactions prescribed under Section 188 of the Act, which are not in the ordinary course of business or not at Arm’s Length Basis and all material related party transactions shall be brought before the Board and the Board shall consider and approve the related party transaction at a meeting.

• Any RPT which is not in the Ordinary Course of Business of the Company or not at Arm’s Length Basis shall be effected only with prior approval of the Board of Directors of the Company, on recommendation of Audit Committee.

• All RPT specified in the Act which are not Ordinary Course of Business of the Company or not at Arm’s Length Basis; and exceed the thresholds laid down in Companies (Meeting of Board and its Power) Rules, 2014 shall be placed before the shareholders for its approval.

• Individual transactions with Related Parties, which are not in Ordinary Course of Business and not on an Arm’s Length Basis, shall be accompanied with management’s justification for the same.

• The Chairman of the Audit Committee/Board shall pay sufficient attention and ensure that adequate deliberations are held before approving Related Party Transactions which are not in Ordinary Course of Business and not on Arm’s Length Basis and assure themselves that the same are in the interest of the Company and its shareholders.

More Definitions of Arm’s Length Basis

Arm’s Length Basis means a transaction between two related parties that is conducted as if they were unrelated, so that there is no conflict of interest. For determining Arm’s Length Basis, guidance may be taken from the transfer pricing provisions under the Income Tax Act, 1961.

Arm’s Length Basis. As to any transaction, agreement or other arrangement, being on terms that would be reached by unrelated parties not under any compulsion to contract.

Arm’s Length Basis means a transaction between two related parties that is conducted as if they were unrelated, so that there is no conflict of interest. [Explanation (b) to Section 188(1) of the Act].

Arm’s Length Basis means basis and principles followed for conduct of transactions between two un-related parties, with no conflict of interest.

Arm’s Length Basis means, with respect to any transaction, such transaction is conducted in the ordinary course of business at prices and on terms and conditions not less favorable to the Borrower and its Restricted Subsidiaries than could be obtained on an arms-length basis from unaffiliated third parties.

Arm’s Length Basis means fair and reasonable terms that are consistent with market practice and which have been agreed in comparable transactions between parties which are independent and Related Parties of, or otherwise affiliated with, each other under comparable circumstances;

Arm’s Length Basis means in relation to a transaction entered into by a person that the terms thereof are no less favourable or onerous to that person than could reasonably be expected to be obtained in a comparable transaction made on commercial terms with a person who is not an Affiliate of that person;