After completion of an arm's length transaction on selling a 100% shareholding with ITERA Oil and Gas Company (ITERA OGC) (that Company being a part of ITERA IGC) to Rosneft Oil Company, all gas assets of ITERA OGC went under full control of that state company.
The Ohio Supreme Court held that the foreclosure sale of an apartment building purchased at a Department of Housing and Urban Development (HUD) auction was not an arm's length transaction and, therefore, did not establish a valuation for property tax purposes (Cincinnati School District Board of Education v.
In this case, Insilco proved at trial that Star was insolvent at the time of the transfer, that the transfer was less than an arm's length transaction, made in bad faith, and that the consideration for the transfer was grossly inadequate.
The contract should also: (1) be in writing and signed by the parties, (2) specify the services to be provided, (3) be for a term of not less than one year, (4) not base compensation on volume or value of referrals or other business, (5) determine compensation in advance based on fair market value and in an arm's length transaction, and (6) not involve promotion or counseling of activities or business arrangements that violate state or federal law.
The "quantum or nature" of affected amounts may be adjusted, in the first case with reference to the terms or conditions that arm's length parties would have adopted, and in the second by substituting, for this analysis, the appropriate arm's length transaction.