---
title: "Assemble the facts for a related-party explanatory statement"
url: "https://ailawframework.com/practice/commercial-and-corporate-advisory/assemble-the-facts-for-a-related-party-explanatory-statement"
type: "task"
site: "AI Law Framework"
id: "A1-JU20261022-10"
practice_area: "Commercial & Corporate Advisory (contracts, company law, governance)"
tier: "red"
lawyer_review: "required"
last_reviewed: "2026-10-22"
---

# Assemble the facts for a related-party explanatory statement

> 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…

Canonical page: https://ailawframework.com/practice/commercial-and-corporate-advisory/assemble-the-facts-for-a-related-party-explanatory-statement  
Last reviewed: 2026-10-22

Site index for agents: https://ailawframework.com/llms.txt

## Key facts

| Fact | Value |
| --- | --- |
| Practice area | [Commercial & Corporate Advisory (contracts, company law, governance)](https://ailawframework.com/practice/commercial-and-corporate-advisory.md) |
| Human involvement | Red: Lawyer writes; AI may check, clarify or collect data |
| 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 / versions | 1 jurisdiction versions below |

## Checking plan

**Lawyer-led judgement**

Collect the facts under the statutory headings. The lawyer writes every sentence of the statement.

- What the AI does: 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 does: 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.
- Who reviews: Responsible lawyer with competence in the matter
- Basis: Practical workflow informed by the linked primary sources; the traffic light and working checks are editorial guidance, not a court classification.
- Why: The level reflects what the work is, the consequence of an error, and how much of the output the lawyer must independently re-derive.
- Restriction: The lawyer makes the substantive assessment. Any permitted AI assistance remains supporting work with its own checks.

## Checks the lawyer makes

1. The statement lodged under section 218 is in writing.
2. It names the related parties to whom the resolution would permit financial benefits to be given, and the nature of those benefits.
3. 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.
4. 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.
5. The lawyer writes the statement. The fact list is not the statement.

## Notes

- 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.

## Sources

- [Corporations Act 2001 (Cth) s 219](https://www5.austlii.edu.au/au/legis/cth/consol_act/ca2001172/s219.html) (checked 2026-10-22)

## Jurisdiction versions

| Jurisdiction | Level |
| --- | --- |
| [United States](https://ailawframework.com/practice/commercial-and-corporate-advisory/assemble-the-facts-for-a-related-party-explanatory-statement/united-states.md) | Yellow |

*Practice guidance for planning and review. Confirm current primary sources and the requirements of the actual matter. This is general information, not legal advice.*