A Shareholders' resolution for RPT, also known as a Shareholders' resolution for related party transactions, is a formal decision-making process undertaken by the shareholders of a company to approve or reject certain transactions involving related parties. Related party transactions refer to business deals or agreements between a company and its affiliates, directors, officers, or significant shareholders. Shareholders resolutions for RPT ensure a transparent and fair decision-making process regarding transactions that may raise potential conflicts of interest. These resolutions are crucial to protect the interests of minority shareholders and maintain corporate governance standards. They aim to prevent any potential abuse of power or unfair advantage that related parties could have over the company. The process of passing a Shareholders' resolution for RPT usually involves the following steps: 1. Identification of Related Parties: The board of directors identifies any transactions that may qualify as related party transactions according to applicable laws and regulations. These related parties can include substantial shareholders, directors, or officers of the company. 2. Preparation of Proposal: The board prepares a proposal that includes all the necessary details of the transaction, such as its purpose, terms, conditions, and the potential impact on the company. 3. Disclosure: The proposal is disclosed to shareholders, along with all relevant information regarding the related party and the transaction, allowing them to make an informed decision during the resolution. 4. Shareholder Meeting: A general meeting of shareholders is convened, where the proposed transaction is discussed, and the shareholders vote on its approval or rejection. This meeting can be an annual general meeting or an extraordinary general meeting specifically called to address the resolution. 5. Majority Vote: The resolution is passed by obtaining a majority vote from the shareholders present at the meeting or represented by proxy. The specific majority required may vary depending on the applicable laws or company's bylaws. Different types of Shareholders resolutions for RPT can be categorized based on the nature of the transaction, such as: 1. Major Related Party Transactions: Shareholders resolutions that address significant or material transactions between the company and related parties fall under this category. These transactions may involve a substantial amount of money or assets. 2. Loans or Advances to Related Parties: When a company provides loans or advances to related parties, a separate resolution may be required to address the terms, conditions, and approval of such financial arrangements. 3. Sale or Purchase of Assets: Resolutions related to the sale or purchase of assets, equipment, properties, or any other material goods involving related parties, come under this category. 4. Related Party Agreements: Shareholders resolutions can also address the approval or renewal of agreements, contracts, or lease arrangements between the company and its related parties. In conclusion, a Shareholders' resolution for RPT is a formal decision-making process through which shareholders approve or reject transactions involving related parties. These resolutions safeguard the company's integrity, prevent conflicts of interest, and ensure transparency in corporate governance. Different types of resolutions exist based on the nature of the related party transaction and the specific requirements of applicable laws.