A Study Of Company Law On Regulation Of Connected Transaction In China And Foreign Countries

As a transaction between connected dealers,affiliated transaction is widely practiced as a means for profits because of its advantages of decreasing transaction cost and expanding business. Based on its definition in law and an analysis of its characteristics,it is concluded that affiliated transaction has the danger of deviating from the principle of justice and spoiling the benefits of minority shareholders and creditors,so that it should be strictly regulated. Regulations of affiliated transaction in foreign countries comprise three parts. The first part is a restriction on the behavior of people engaged in management;the second and third parts are both protections,the second part is to protect the minority shareholders from two aspects,i.e. entity law and procedure law,and in the third part,it is a protection for the benefits of creditors in different means. Regulations in other countries are references for our country to make company law on affiliated transaction more perfect,which can,therefore,greatly advance our economic development.