related party


related party
Under the Listing Rules, parties who are deemed to be related to a listed company in connection with transactions undertaken with the listed company. They are:
• A substantial shareholder, that is a shareholder (excluding a bare trustee) who is, or was, at any time in the 12 months preceding the transaction or arrangement, entitled to exercise or control the exercise of 10% or more of the votes at a general meeting of the company (or of any of its subsidiary undertakings (which are not insignificant subsidiaries (insignificant subsidiary)), parent undertaking or a fellow subsidiary of its parent undertaking).
• A person who is or was, in the 12 months preceding the transaction or arrangement, a director or shadow director of the listed company or any other company which is (and, if he has ceased to be such, was while he was a director or shadow director of such other company) its subsidiary undertaking (which is not an insignificant subsidiary) or parent undertaking or a fellow subsidiary of its parent undertaking.
• A person exercising significant influence (that is, a person or entity which exercises significant influence over the listed company).
• An associate of any of the above (paragraph 11.1.4R, Listing Rules).
Related links

Practical Law Dictionary. Glossary of UK, US and international legal terms. . 2010.

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