Related party transactions

Work covered by the assignment

We map relationships, collect the commercial terms and identify the approval and disclosure questions. The deliverable can include a transaction register, decision checklist and supporting record pack.

1. Establish the relationship information and the period or proposed transaction covered.
2. Collect the contractual terms, values and commercial rationale.
3. Prepare the approval and disclosure questions for assessment.
4. Organise the agreed decision papers and maintain a transaction evidence register.

Keep proposed, approved and executed transactions distinguishable. Later changes in terms should remain visible rather than being overwritten in the original assessment.

Records that establish the starting position

• Group and ownership chart
• director interests
• counterparties
• agreements and pricing rationale
• transaction values
• previous approvals and disclosures.

Link each counterparty to the evidence explaining the relationship, and record the date of that information. Reconcile transaction values to the underlying contracts and accounts. Identify missing interest declarations or group information as gaps rather than treating an incomplete list as a confirmed absence of related parties.

A practical point to resolve

A founder-owned landlord leasing premises to the company should be visible in the relationship map. The lease should then be assessed on its actual terms and the applicable company requirements.

For the premises example, retain the lease, ownership information, rent schedule, deposits and supporting commercial rationale together. If the rent or leased area changes, record that change for assessment against the existing decision and disclosure record.

Boundaries and engagement terms

Tax transfer-pricing work and fairness or valuation opinions are separate from corporate approval coordination.

We confirm the covered event or financial period, deliverables, professional involvement and fees in writing. The enquiry should identify any approaching date and outstanding prior work.

The completion pack can include the relationship map, transaction schedule, decision documents and reporting inputs. It identifies unresolved facts and who maintains the register after handover. The governance service coordinates the associated meeting record where included.