In the September 9, 2015 Regular Meeting of the Board of Directors of the Energy Development Corporation, the board approved the following:
- Related Party Transactions (RPT) Policy
- Creation of the RPT Board Committee and Committee Charter
- Related Party Transactions Policy Guidelines
It is the policy of the company that related party transactions (“RPTs”) are done under reasonable, fair, and arm’s length terms in compliance with pertinent laws, rules, and regulations, to ensure that the transactions inure to the benefit and best interest of the company and its shareholders as a whole, given relevant circumstances.
Material RPTs shall be disclosed to and reviewed by the company’s independent directors, and shall be approved in accordance with the RPT Policy.
Parties are considered to be related if one party has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial and operating decisions. Parties are also considered to be related if they are subject to common control.
Amounts outstanding of related party transactions are unsecured and will be settled in cash. Outstanding balances of related parties are reconciled monthly. Full disclosure is made on the related party transaction and its details in our financial statements. For the report on the related party transactions for 2015, see pages 78-80 of EDC’s 2015 Consolidated Annual Audited Financial Statement
To view EDC’s Related Party Transactions Policy, click here.