A financially interested person is someone who has a financial stake in a business or a transaction. This can include individuals who serve as officers, employees, or board members of a company, as well as those in a position of control over the entity. Additionally, it may refer to anyone involved in the trade or commerce of goods or products related to the financial interests at hand.
The term "financially interested person" is often used in various legal contexts, particularly in business law and regulations governing commerce. It is relevant in situations involving corporate governance, financial disclosures, and compliance with federal regulations, such as those enforced by the Department of Agriculture. Users can manage related forms and procedures with legal templates available from US Legal Forms.
Here are a couple of examples of abatement:
Example 1: A member of a company's board of directors who owns shares in the company would be considered a financially interested person, as their financial interests could influence their decisions.
Example 2: A supplier who provides goods to a business and has a financial stake in the success of that business is also a financially interested person. (hypothetical example)
One relevant regulation is found in 7 CFR 54.1, which defines a financially interested person as anyone with a financial interest in products involved in transactions, including shippers, receivers, producers, sellers, buyers, or carriers.
| Term | Definition | Difference |
|---|---|---|
| Interested Party | A person or entity with a stake in a legal matter. | Broader than financially interested person; can include non-financial interests. |
| Conflict of Interest | A situation where personal interests could influence professional actions. | Focuses on ethical implications, while financially interested person centers on financial stakes. |
If you believe you are a financially interested person in a business context, it is essential to disclose your financial interests to relevant parties, such as your employer or board. You may also want to review legal forms related to disclosures and compliance, which can be found on US Legal Forms. If your situation is complex, consider seeking professional legal advice.
Browse our library of 85,000+ state-specific legal templates.
Anyone with a financial stake in a business or transaction qualifies, including employees, board members, and suppliers.