Related party register template

A related party register is the entity's record of who its related parties are and what transactions it has entered into with them. Keeping it current supports good governance generally, and for some entities it is tied directly to a reporting or approval obligation. For public companies, Chapter 2E of the Corporations Act requires member approval before the company gives a financial benefit to a related party, unless an exception applies. For registered charities, the Australian Charities and Not-for-profits Commission requires related-party transactions to be reported in the Annual Information Statement. A register makes both far easier to manage.

What the register is for

Related party dealings carry a higher risk of conflict because the people on both sides of a transaction may overlap with those who govern the entity. A register brings these relationships and dealings into the open so the board can identify them, decide how to manage any conflict, obtain any approval that is required, and report accurately. It is also a practical aid at reporting time, because the information needed for the Annual Information Statement or financial statements is already captured rather than reconstructed from memory.

What to include

A useful related party register typically records two linked sets of information. For each related party:

- Name of the related party and the nature of the relationship (for example director, a close family member of a director, or an entity controlled by a director). - Date the relationship began and, where relevant, ended. - Relevant interests or positions held.

For each transaction with a related party:

- Date of the transaction and a description of what was provided. - The related party involved and the value or financial benefit. - Whether the terms were arm's length and the basis for that view. - Any board or member approval obtained, including the relevant resolution and date. - Any exception relied on, and how the transaction will be reported.

Public companies and Chapter 2E

For public companies, section 208 requires member approval before the company gives a financial benefit to a related party, unless one of the exceptions in Chapter 2E applies. A common exception is a benefit given on terms that would be reasonable in the circumstances if the parties were dealing at arm's length, under section 210. The register helps the board identify when a proposed benefit falls within Chapter 2E, decide whether an exception is available, and document the approval pathway taken. It is not a substitute for legal advice on a specific transaction, but it ensures the relevant facts are recorded.

Charities and the ACNC

Registered charities report related-party transactions through the Annual Information Statement, and medium and large charities also reflect them in financial statements. Maintaining the register throughout the year means the entity can answer the AIS questions from a complete record rather than scrambling at reporting time. The register should capture enough detail about each relationship and transaction to support accurate disclosure.

Common mistakes

Boards often define related parties too narrowly, missing close family members or entities controlled by a director. Another frequent error is recording the relationship but not the transactions, or the reverse. Some boards assume a transaction is at arm's length without documenting the basis for that conclusion, which weakens reliance on the exception. Failing to capture the approval pathway, or treating the register as an annual task rather than a live record, also undermines its value.

How Quorum helps

Cohiva Quorum keeps your related party register up to date alongside the board's decisions, linking each transaction to the resolution or member approval that authorised it and to any exception relied on. It helps you assemble the information needed for Annual Information Statement reporting or member-approval steps from a single maintained record. Quorum helps you comply and supports your obligations; the entity and its officers remain responsible for compliance.

Part of the Cohiva platform

Cohiva Quorum is part of the Cohiva platform at https://www.cohiva.com. Where a related party approval or agreement needs signing, you can route it through Cohiva Sign for e-signatures so the executed document flows back into the minute book against the register entry.