Related party transactions
The Group’s parent company, subsidiaries, associated companies and joint ventures included in Alma Media’s related parties. Pursuant to IAS 24, the Group’s related parties consist of its Board of Directors, the CEO and the Deputy CEO of the parent company and the managing directors of the major subsidiaries as well as the other executives of the Group and the Group’s key shareholders who exercise control or significant influence over the decision-making processes relating to the finances and business of the parent company or significant subsidiary. The close family members of the aforementioned persons are also considered to be related parties of the Group. The related parties also include Alma Media shareholders who own more than 20 per cent of the Group’s shares or the total number of votes carried by the Group’s shares.
The Group maintains a record of its related parties in order to identify transactions with related parties. Transactions with associated companies and joint ventures are monitored using the Group’s reporting system. Related party transactions that are not part of the ordinary course of the Group’s business or are not implemented under arm’s-length principles are subject to a decision by the Board of Directors. Related party transactions and the nature of their terms is assessed on a case-by-case basis and in relation to the Group’s ordinary course of business and the arm’s length principle as well as the industry’s generally observed and accepted market practices.
To organise the identification, reporting and monitoring of related party transactions, the Board of Directors has assigned the Audit Committee to monitor transactions by the Group’s management and their related parties and any potential conflicts of interest involved therein. The Audit Committee monitors and evaluates the degree to which contracts and other legal transactions between the Group and its related parties comply with the legal requirements for being part of the ordinary course of business and being conducted on an arm’s length basis. The CEO reports all related party transactions to the Audit Committee annually. The Group has issued guidelines for the members of the Group Executive Team on the identification of related party transactions and they are obligated to notify the Group in advance of any contracts and legal transactions they plan to carry out with Group companies.
The Group reports any transactions with related parties annually in its Report by the Board of Directors and the notes to the financial statements in accordance with the Limited Liability Companies Act and the legislative provisions governing the preparation of financial statements. The Group publishes related party transactions in the manner stipulated by the Securities Market Act, the rules of the stock exchange and the Market Abuse Regulation.