October 30, 2021
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Related-party transaction compliance warned: regulator rejects arm's-length justification and signals enforcement for repeat breaches.
A listed company executed related-party transactions without prior audit committee approval, later ratified after delay, and auditors flagged both the transactions and delayed disclosure of a board meeting outcome. The regulator emphasised the requirement for prior audit committee approval, found arm's-length assertions insufficient to excuse non-compliance, issued a formal warning, directed placement of the warning before the board and dissemination to stock exchanges, and warned of potential enforcement for future repetitions.