Assemble the facts for a related-party explanatory statement
Key facts
- Human involvement
- RedLawyer-led
- How AI is used
- Under the headings in the section, list the related parties, the nature of the financial benefits, and the facts in the file that go to each director's recommendation, interest, and the costs and detriments known to the company. Do not write the statement.
- What the lawyer must review
- The lawyer writes the explanatory statement, including each director's recommendation or why there is none, each director's interest, and the information members need.
- Written for / version
- US
Open a jurisdiction version of this task to see which instruments apply: US
Who does what
| Role | What they do |
|---|---|
| Assistance | Supporting preparation only. Under the headings in the section, list the related parties, the nature of the financial benefits, and the facts in the file that go to each director's recommendation, interest, and the costs and detriments known to the company. Do not write the statement. The tool writes nothing into the document. Substantive advice, judgement and any restricted content remain with the responsible human. |
| Lawyer | Perform the substantive analysis and decisions. Independently check any permitted supporting work and approve the exact output for its intended use. |
Checklist
- The statement lodged under section 218 is in writing.
- It names the related parties to whom the resolution would permit financial benefits to be given, and the nature of those benefits.
- For each director it records the recommendation and the reasons, or why the director does not make one, or why the director was not available, and whether the director had an interest in the outcome and, if so, what it was.
- It includes the other information known to the company or any director that members reasonably require to decide whether passing the resolution is in the company's interests, including opportunity costs, taxation consequences and benefits forgone.
- The lawyer writes the statement. The fact list is not the statement.
Sources
- Corporations Act 2001 (Cth) s 219 · 2026-10-22
These are suggested working checks. Confirm the required checking with the responsible lawyer before work starts; the checking approach does not establish permission to use AI.