## Relative [Section 2(77)]

### Definition

A person shall be deemed to be a 'relative' of another if:

1. They are members of a Hindu Undivided Family (HUF); OR

2. They are Husband and Wife; OR

3. They are related to each other in the manner prescribed under the Rules.

### Prescribed List of Relatives (Rule 4 of 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 him/her in the following manner:

1. Father (including step-father)

2. Mother (including step-mother)

3. Son (including step-son)

4. Son's wife

5. Daughter

6. Daughter's husband

7. Brother (including step-brother)

8. Sister (including step-sister)

### Visual Memory Aid

```

Self

Father / Mother (incl. step-)

Brother / Sister (incl. step-)

Son / Daughter (incl. step-)

Son's wife / Daughter's husband

+ Spouse (Husband / Wife)

+ HUF members

```

### Why is this Critical?

The definition triggers several compliances and disclosures: related party transactions (Section 188), loans to directors (Section 185), interested director provisions (Section 184), etc.

Worked example

### Example 1

Q. Is the brother of the wife of a Director (i.e., brother-in-law) a 'relative' under Section 2(77)?

A. No. The prescribed list under Rule 4 does not include a spouse's brother. Therefore, a brother-in-law is not a relative for the purposes of the Companies Act, 2013.

### Example 2

Q. A Director's step-mother is a member of a company. Will she be considered a 'relative'?

A. Yes. The prescribed list expressly includes step-mother. Hence, she is a relative.

⚠️ Common exam mistakes

Adding broader Indian family relations (e.g., brother-in-law, mother-in-law, nephew, niece, grandparents) that are NOT in the statutory list.
Omitting step-relations — these are expressly covered.
Forgetting HUF members and spouse limbs.
Including parents-in-law (father-in-law / mother-in-law) — they are NOT included.

Bare-Act text Section 2(77) · Companies Act, 2013 read with Rule 4 of the Companies (Specification of Definitions Details) Rules, 2014 · click to expand

'Relative', with reference to any person, means anyone 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. [Rule 4 of Companies (Specification of Definitions Details) Rules, 2014: A person shall be deemed to be the relative of another, if he or she is related to another in the following manner, namely: (1) Father (including step-father); (2) Mother (including step-mother); (3) Son (including step-son); (4) Son's wife; (5) Daughter; (6) Daughter's husband; (7) Brother (including step-brother); (8) Sister (including step-sister).]

Now that you've read this — what's next?

Move from understanding → mastery in 3 clicks. Each option below picks up from this lesson's topic.

🔥 Drill 5 Qs on this → ✍️ Adaptive practice →