February 2020 Issue Vol.10 No.2
Related Party Transaction in the new era of Corporate Governance
Nandakumar Raman
Abstract:
Corporate Governance warrants an entity to comply with the applicable statutory regulations and to ensure that the transactions entered in to / proposed to be entered into is in the best interest of the entity, employees, investors and all other stake holders. Corporate governance would have a direct impact on the profits and reputation of the entity concerned and having poor policies can expose the entity to law-suits, fines, reputational damage and loss of capital investment.
One of the critical component of Corporate Governance Regulations (“The Regulations”) is to ensure that the Related Party Transactions (“RPT”) are entered into in the best interests of the entity and all its stakeholders.
