Related party transactions require board resolution and possible shareholder approval, disclosure and penalties for noncompliance. Section 188 requires prior Board resolution (and, where prescribed, company resolution) for specified contracts or arrangements with related parties including sale, purchase, lease, services, agency, offices or places of profit and underwriting, subject to exemptions for ordinary course arm's length transactions and intra-group wholly owned subsidiary dealings; such contracts must be disclosed in the Board's report with justification, unauthorised transactions are voidable unless ratified within three months and responsible directors may be required to indemnify the company, with monetary penalties for contraventions.