What are Related Party Transactions (RPTs)?

"Business transactions conducted with entities outside the company's network" "Illegal business activities involving financial manipulation" "Transactions between a company and its close associates, such as shareholders or subsidiaries" "Agreements made exclusively with international partners"

Why are Related Party Transactions (RPTs) regulated?

"To promote international trade and collaboration" "To encourage competition and innovation in the market" "To prevent potential conflicts of interest and protect shareholder interests" "To simplify tax calculations and financial reporting"

Which of the following is NOT a potential risk associated with RPTs?

"Favoritism towards related parties in business deals" "Transactions conducted at prices that may not be market-driven" "Increased transparency and accountability in company operations" "Potential harm to the interests of regular shareholders"

What is a key provision of the Companies Act, 2013, regarding RPTs?

"Prohibition of all RPTs to ensure fairness" "Mandatory disclosure of RPTs in company reports to shareholders" "Establishment of a fixed market price for all RPTs" "Exemption from taxation for all RPTs"

What could be a consequence for a director who authorizes an RPT that is later deemed irregular?

"Promotion to a higher management position" "Financial rewards and bonuses" "Legal liability and potential imprisonment" "Increased voting rights in company decisions"