List of “Relatives” under Section 2(77) of Companies Act 2013

Before we get to know what ‘Relative’ mean under the Companies Act, 2013 and who are the persons who will be considered as Relatives, one may wonder 'why do we need to know in the first place as to who are the Relatives under the Companies Act, 2013?'.

Because there are many references under the Companies Act, 2013 and rules made thereunder and also under other relevant acts and regulations made for Indian Companies, wherein restrictions/limitations are put on such relatives of any directors/shareholders/key managerial persons/officers etc. of a company to do something.

Therefore, it is important to know the criteria of all those persons who are covered under the definition of 'Relative'.

Definition of ‘Relative’

Sub-Section (77) of Section 2 of the Companies Act 2013 defines "Relative" as under: 

"Relative" means, with reference to any person, means any one who is related to another, if—

(i) they are members of a Hindu Undivided Family;
(ii) they are husband and wife; or
(iii) one person is related to the other in such manner as may be prescribed;

Further, as per Rule 4 of the Companies (Specification of definitions details) Rules, 2014, a person shall be deemed to be a relative of another, if he or she is related to another in the following manner, namely:-

(1) Father:
Provided that the term “Father” includes step-father.
(2) Mother:
Provided that the term “Mother” includes the step-mother.
(3) Son:
Provided that the term “Son” includes the step-son.
(4) Son’s wife.
(5) Daughter.
(6) Daughter’s husband.
(7) Brother:
Provided that the term “Brother” includes the step-brother;
(8) Sister:
Provided that the term “Sister” includes the step-sister.