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Alex J.
Alex J., Solicitor
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Is a cousin-in-law defined as a related party under commercial

Resolved Question:

Is a cousin-in-law defined as a related party under commercial law?
Submitted: 2 years ago.
Category: Law
Expert:  Alex J. replied 2 years ago.
Hi,
Thank you for your question and welcome.
My name is ***** ***** I will assist you.
Under the Companies Act 2006 S.252 and S.253 a cousin- law would not be considered a connected party.
Is this in relation to a limited company?
Kind regards
AJ
Customer: replied 2 years ago.

Thank you Alex.

Yes, this is in relation to limited company.

If a director/manager signs a contract on behalf of her company with a cousin-in-law (i.e. her husband's company) at arms length commercial terms, should this be reported as a related party transaction?

Thank you.

Expert:  Alex J. replied 2 years ago.
Hi,
Thank you.
Will the director in any way personally benefit from it?
To be safe if I were the director I would be inclined to disclose this at a board meeting but it does not actually require any approval of shareholder. The only issue you have to ask is whether there is a potential conflict of interest - the fact that someone may kick up a fuss about it (however un just) means that the director should consider disclosing to avoid a future complaint, even if that complaint is unfounded.
Kind regards
AJ
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