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Related Party Transaction
Practical Law Glossary Item 8-382-3755 (Approx. 3 pages)
Glossary
Related Party Transaction
A transaction, which includes any financial transaction, arrangement or relationship (including any debt or guaranty of debt) or any series of similar transactions, arrangements or relationships, involving the company and a related party.
The SEC requires reporting companies to describe in their annual reports on Form 10-K, proxy statements and registration statements:
- Any related party transaction in which the amount involved is greater than $120,000 and the related party has a "material interest."
- Their policies for reviewing and approving related party transactions.
(Item 404, Regulation S-K.)
For more information, see Standard Document, Related Party Transactions Policy.