Affiliated persons include major shareholders, members of the supervisory board and executive body, companies within the same group, and close relatives of managers. The common characteristic is the ability to influence the company's decisions.
The term has practical significance: transactions with affiliated persons require special approval procedures due to inherent conflicts of interest. A company may sell an asset to a related entity at an undervalued price or purchase services from it at inflated rates, ultimately placing losses on minority shareholders.
Joint-stock companies in Uzbekistan are required to publicly disclose their list of affiliated persons and information about transactions with them. For investors, this is one of the most informative sections of financial reports: an abnormally large volume of transactions with related parties warrants examining the ownership structure before making a purchase decision.