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

• 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.

• These transactions too were in the Ordinary Course of Business of your Company and were at Arm’s Length Basis.

• All Contracts/ arrangements/ transactions entered by the Company are on Arm’s Length Basis during the financial year with the related parties.

• In accordance with Section 188 of the Companies Act and the Listing Regulations, the Board of Directors and shareholders of the Company shall accord prior approval for Related Party Transactions, subject to the following: Board of Directors and Shareholders’ approval in terms of Companies Act: All Related Party Transactions which are either not on Arm’s Length Basis or not in the Ordinary Course of Business shall be recommended by the Audit Committee for the approval of the Board of Directors.

More Definitions of Arm’s Length Basis

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 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 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 transactions at the prevailing market conditions between parties not closely connected and where there is no conflict of interests.