Omnibus approval
ESG & GovernanceA single advance approval for a set of repeated related-party transactions, within stated limits, instead of approving each one separately.
The audit committee can give omnibus approval for related-party deals that are repetitive in nature, valid for up to one year, after setting criteria such as the maximum value and the pricing method. Shareholders can also approve material RPTs in an omnibus form. Omnibus approvals are practical for routine trade, but wide limits and vague descriptions reduce oversight. Read the limits and compare them with actual transactions.
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