Additionally, if the benefit constitutes reasonable remuneration to the officers of the company or if the transactions are in satisfaction of expenses reasonably incurred. Similarly, if the related party transaction imparts a benefit that can be construed as “reasonable benefits” with respect to indemnities, exemptions or insurance premiums relating to officer liability, member approval can be avoided.
Any benefits provided to satisfy the reasonable payment of legal expenditure, advances of up to $2,000 (or more, as dictated by legislation) to a director or his or her spouse, a benefit given to or by a “closely held” subsidiary, a benefit given in one’s capacity as a shareholder or a benefit mandated by Court order are also all exceptions to the usual approval requirements.