Related-Party Transactions Policy
Subscriber Content
The following sample outlines a set of policies and procedures for handling related party transactions. The intended use of this policy is for domestic offices and subsidiaries of a company. The policy excludes inter-company transactions between members of a company and its subsidiaries.
In this sample, all transactions with related parties require the prior approval of the chief financial officer. In considering the approval of a related party transaction, a legitimate business case must be developed including the arm's length nature of the proposed transaction and the disclosure implications of such a transaction in a company's financial statements.