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Interested-party transaction

An operation in which a person able to influence the company's decisions has an interest on the other side of it.

How to read the number

It calls for disclosure and a special approval route: those whose interest creates the conflict do not vote on it.

When the metric lies

An interest does not make a deal bad, nor its absence make one good. The point of the procedure is disclosure of terms, not prohibition.

Also known as: interested-party transaction

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