What to keep in mind
Establish identification, disclosure, market comparisons, recusals where required, decision-making authority and records.
Formal documentation without a genuine review may fail to address a conflict.
Distinctions often confused
A transaction is not unlawful solely because the parties are related.
Frequently asked questions
Must every related-party transaction be prohibited?
No. Applicable safeguards and substantive fairness must be assessed.
Why should the price be benchmarked?
To help demonstrate that the company's interests were considered.
Informational content. It is not a substitute for professional advice.