Legal Study On The Connected Transaction Of The Listed Company

Affiliated transaction, as an economic phenomenon, comes up with the development of the corporation system. It also has relations with the interest subjects, who relate to corporation, such as stockholders, directors, managers, supervisors, and other correlative subjects. With the developing corporation, affiliated transaction has been widely used in today's corporations. Corporation is based in a group of benefactors. Affiliated transaction increases the conflict of benefits. Affiliated transaction is a legal commerce in truth. It is inevitable for related corporations to engage in related transaction. Related transaction is a complex economic phenomenon between various interest parties of related corporations, and has its inevitability and rationality. From the economics view, related corporations definitude the relationship between producing, supplying and selling, optimize capital structure, as a result, they learn from others' strong points to offset one's weakness and maximize their own interest. At the mean time, related transaction can reduce transaction cost, optimize resource allocation, facilitate economies of scale, increase operation efficiency, enhance market competition and maximize revenue; hence, related transaction is widely practiced. Related transaction is not only efficient to corporation but also bad to justice .economic market is based in justice. Everyone is equal in society. Related transaction is equal in body, tough essences is not equal. However, the controlling and affiliation relationship between related corporations who are the specific parties of related transaction leads to the controlling corporation's abuse of controlling power and improper related transaction. Many listed corporations...