Enter to open, tab to navigate, enter to select
Related party transaction
Practical Law UK Glossary 5-107-7133 (Approx. 5 pages)
Glossary
Related party transaction
In the Listing Rules (LR), in relation to a premium listed company:
- A transaction (not in the ordinary course of business) between the listed company (or its subsidiary undertaking) and a related party of that company.
- An arrangement (not in the ordinary course of business) under which the listed company (or its subsidiary undertaking) and a related party each invests in or provides finance to another undertaking or asset.
- A similar transaction or arrangement (not in the ordinary course of business) between the listed company (or its subsidiary undertaking) and any other person, the purpose and effect of which is to benefit a related party.
(LR 11.1.5R.)
For more information, see Practice note, Listing Rules: LR 11: Related party transactions: What is a related party transaction?.
In the Disclosure Guidance and Transparency Rules (DTR), in relation to an issuer of shares that both carry voting rights at a general meeting and are admitted to trading on a UK regulated market:
- A transaction (not in the ordinary course of business and on normal market terms) between the issuer (or its subsidiary undertaking) and a related party.
- An arrangement (not in the ordinary course of business and on normal market terms) under which the issuer (or its subsidiary undertaking) and a related party each invests in or provides finance to another undertaking or asset.
- A similar transaction or arrangement (not in the ordinary course of business and on normal market terms) between the issuer (or its subsidiary undertaking) and any other person, the purpose and effect of which is to benefit a related party.
(DTR 7.3.3R.)