What is it affiliated Person

Affiliated Person is those who can to influence the decision-making process and the activities of other individuals engaged in entrepreneurial activities. An analog of this concept in public procurement is related parties.

Who Can be an Affiliated Person

Affiliated persons can be both by private entrepreneurs and companies. Affiliated persons themselves can also both legal entities and individuals.

For Legal Entities

Affiliate person  to a legal entity are:

1. 1. Members of the collegial executive or managing body of such a legal entity or people possessing such powers alone.

   2. Persons, legal and physical, with more than 10% of the vote or the amount of the authorized capital.

   3. Persons corresponding to the same group of persons as the specified legal entity.

   4. Members of the collegial executive or managing body of a group of companies in which such a legal entity is a member, or people possessing such powers alone.

   5. Legal entities staying with the specified company under the control of third parties.

   6. Persons acting by proxy or order from the company.

Also, affiliated persons include not only company officials, but also their relatives.

For Individuals

An affiliated person to an individual are:

1. 1. Persons corresponding to the same group of persons as the specified individual.

   2. Companies in which the individual has at his disposal 10% or more of the total number of votes or registered capital.

   3. Relatives of such an entrepreneur.

Analog of Affiliated Person in Public Procurement

In public tenders ProZorro, as well as in commercial procurement or sales, uses the term “related parties”, implying the presence of anticompetitive actions on such persons. Related may be:

1. 1. Participants. Both two suppliers and all suppliers in a separate tender can act in a coordinated manner.

   2. Participant (s) and organizer. A typical situation is a relationship between one of the suppliers and the customer.

Coordinated actions of related parties lead to limited competition and waste of budget funds and therefore are considered the main corruption actions. You can see examples of complaints in the Antimonopoly Committee of Ukraine on alleged actions of related parties using the analytical tool of the SmartTender.biz electronic trading platform.