Related Party
/ˈrɛl.eɪ.tɪd ˈpɑr.ti/
Definitions
- (n.) An individual or entity with a close connection to a company, often by control, ownership, or familial relationship, affecting transactions and disclosures.
The company must disclose all dealings with its related parties in the financial statements.
Forms
- related party
- related parties
Related terms
See also
Commentary
Identify related parties carefully to ensure compliance with disclosure rules and avoid conflicts of interest in corporate governance.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.