Is approval of Central Government required if promoter's son is employed in the same company?

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1138808

2026-03-24 18:15

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Yes, approval from the Central Government is typically required if a promoter's son is employed in the same company, particularly under the Companies Act in India. This is to ensure compliance with provisions related to related party transactions and to avoid potential conflicts of interest. Companies must disclose such employment arrangements and seek necessary approvals to maintain transparency and adhere to corporate governance standards.

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