Related-Party Transactions
/ˌrɪleɪtɪd ˈpɑːrti trænˈzækʃənz/
Definitions
- (n.) Transactions between a company and parties that have a preexisting relationship with the company, such as directors, officers, or family members, possibly requiring disclosure due to potential conflicts of interest.
The board reviewed all related-party transactions during the audit to ensure transparency.
Forms
- related-party transaction
Related terms
See also
Commentary
Proper identification and disclosure of related-party transactions are critical to prevent conflicts of interest and protect shareholder interests.
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.