Boards, directors & committees · Core

Related-party transaction

Also called: RPT

ELI5

A transaction involving a person or entity related under the applicable governance or reporting definition.

Used in conversation

“Can we circulate related-party transaction with the assumptions and open questions marked?”

Pitch context

You will see “Related-party transaction” in board papers, contracts, policies, risk registers and compliance reports when the discussion reaches boards, directors & committees.

Why it matters: In boards, directors & committees, a loose definition can change rights, obligations, approval, disclosure or enforceability.

Caution

Meaning, enforceability and required process vary by jurisdiction and agreement; this definition is not legal advice.

Sources & evidence · 7

Direct term-level sources and supporting source families.