Related Party Transactions


The past couple of days, I learned a new term – Related Party Transactions (RPT).  It’s part of regulatory bodies exercise on getting companies to practice corporate transparency and proper compliance.

What’s RPT all about?

RPT is a transaction that involves transfer of resources, services or obligations between two related parties.  The transaction may involve monies.  Related party can mean a major shareholder or a person connected with a director or major shareholder in that company.

Examples of transactions could be:

  • purchase or sales of goods
  • rendering or receiving services
  • transfer of research and development
  • settlement of liabilities

The reason why this is regulated is to protect the interest of all shareholders and that the directors maintain their duty of good faith and act in the best interest of the company.


About kawiz

A working mother turned stay-at-home mom, who is managing her two toddlers and her twin babies on her own. As like any parent, she wants to provide the quality of life to her boys. To make ends meet, she's thinking of setting up an online business. Five years has passed, her business more focused on making local delicacies, be it malay or chinese delicacies. Her western cakes and desserts are popular among customers too.

Leave a Reply

Please log in using one of these methods to post your comment: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s