Related party transaction

In business, a related party transaction is a transaction that takes place between two parties who hold a pre-existing connection prior to the transaction.

In commercial law, special regulations may apply restricting related party transactions, such as Part 2E of the Australian Corporations Act 2001, which requires companies to seek approval from its members for such a transaction to take place.[1]

References

  1. ↑ Corporations Act 2001 (Cth), Part 2E (Australia)
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