Summary-related parties

Question 1

Bagshot

Answer 1

Related Parties Bullet Points

• Mrs Shaw’s Acquisition: Would be deemed a related party transaction if it gives her control or significant influence over Bagshot Co.Tutorial Note:
  - Control: Assumed if owning more than 50% of voting rights.
  - Significant Influence: Assumed if holding is between 20% and 50%.
• Mrs Shaw’s Interest:
  
  • 5% Interest: Way below the threshold for control.
  • Less than 20% Voting Power: Unlikely to have significant influence.
• Bagshot Co’s Directors:
  
  • Related Parties: Directors are related parties of Bagshot Co.
  • Mrs Shaw’s Knowledge: Unaware of proposed restructure, suggesting no board position.
• Close Family Member:
  
  • Relationship to Mr Shaw: Mrs Shaw would be a related party if Mr Shaw is a member of Bagshot Co’s key management personnel.
  Tutorial Note:
  - Close Family Definition: Includes children, spouses, or domestic partners.