An example is how a dominant shareholder may benefit from making one of their companies trade with another at advantageous prices.
[1] In commercial law, special regulations may apply restricting related-party transactions, such as Part 2E of Australia's Corporations Act 2001, which requires companies to seek approval from their members for such a transaction to take place.
[3] In England, there are restrictions and notification requirements in place regarding related-party transactions entered into by Academy Trusts.
[5] Academies must seek approval from the Education and Skills Funding Agency (ESFA) before they undertake any related-party transactions valued over £20,000.
The vast majority of these were compliant with relevant guidance protecting public funds (the Academies Accounts Direction),[7] but transactions at 17 trusts were found to be irregular or improper.