Related-Party Transaction

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Related-Party Transaction

A transaction between two businesses that have a personal or other relationship. For example, a publicly-traded company may be inclined to hire a large, minority shareholder as a supplier. In small businesses, a company may hire the owner's brother-in-law to repair the driveway. Related-party transactions are legal, but create the potential for conflicts of interest. Thus, publicly-traded companies are required to report them on their 10-K forms.
References in periodicals archive ?
Under the Governance Rules, any shareholder holding 5% or more of the share capital is entitled to view all documents and information pertaining a related party transaction. That said, in addition, any shareholder (even those holding less than 5%) is entitled to view such documents and information in the general assembly deliberating the transaction.
* Comparing the terms of the related party transaction to those of an identical or similar transaction with one or more unrelated parties
State and local governments are required to disclose certain related party transactions. (1) If the substance of a particular transaction is significantly different from its form because of the involvement of related parties, financial statements should recoguize the substance of the transaction rather than merely its legal form.
Beginning with the Continental Vending case in the 1960s, related party transactions have been a way in which perpetrators of financial statement fraud have crafted their work at the expense of unsuspecting auditors and the public.
The Transaction is a small related party transaction under UK Listing Authority ("UKLA") Listing Rule 11, Annex 1, as the IDC, a substantial shareholder in the Company's subsidiary Kumba Iron Ore Limited, is a shareholder in the Purchaser.
Alexander's chose to proceed with a conflicted, related party transaction without having first explored all strategic alternatives to maximize value for its shareholders.
Accordingly, the issuance of the Promissory Notes is a related party transaction under MI 61-101.
Under UK regulations this acquisition is classified as a "related party transaction" and requires the approval of Mecom shareholders at a general meeting, which is scheduled for 2 April 2012.
Pirola falls to be treated as a related party transaction under Rule 13 of the AIM Rules for Companies.
Muller is also one of the directors and vendors of Pelagian, so the acquisition is classified as a related party transaction under PLUS rules.
The purpose of this resolution was the approval of a related party transaction between Alcatel Lucent and Nokia.
Byron Pirola falls to be treated as a related party transaction under AIM Rule 13.