Research On Rule The Related Transaction In Company Law

Related transactions refer to the behavior of shifting the interests between the main body which has control or significant influence relations. There are two sides in the related transactions. On one hand, it can promote efficiency and the other hand, it may contain fraudulence. The basic characteristic of related transactions is that it must occur between the related parties. In addition, the related transactions also include the following important characteristics:Exists conflicts of interest, equality in form but inequality in substance and the tendentious inequality. It is rational to treat conflict-of-interest transactions neutrally; fair test including procedure and substantive fairness, is the appropriate standard to review conflict-of-interest transactions. Meanwhile, in order to protect the fair trade and trading order, it should regulate the improper related transactions effectively, drawing on the advantages and avoiding disadvantages.In our country’s "Corporate Law", the concept of incidence relation is defined, and it set up the basic terms of regulating related transactions, it also formed a series of regulation system, thus it has formed a foundational company law system of regulating related transactions. But the measures are not perfect; it is not conducive to protect the legitimate rights and interests of companies, small and medium-sized shareholders and creditors. In building the legal system of rules and regulations, it should perfect the suffrage-avoiding system, perfecting and softening the system for minority shareholders, improving the system disregard of the corporate entity, and introducing the principle of "deep rock", to protect the interest of creditors.