The Discussion On How To Consummate The Law Control And Regulation Of The Company Interrelated Transaction

The Interrelated party transaction of companies is closely focused on by the corporate interest parties including investors,creditors and supervisors. The legal issues arising out of the interrelated have extended to the areas of corporation law securities law tax law and anti-trust law. The law control and regulation of the interrelated transaction has become one of the important legal research topics. Many theses have been involved in the field. Some have set forth a few ways to control the interrelated party transaction. In view of the positive and side effects of the interrelated party transaction, the author disagrees to prohibit such transaction while in favor of taking all kinds of strict measures to restrain the bad so that the merits could be released.This article starts from defining what the interrelated transaction amongst the companies is. Then introduce the phenomena of the interrelated transaction amongst the companies, and the specialty of the interrelated transaction in our state. The thesis analyzes the causes of controlling the interrelated transaction amongst the company other than forbidding such transaction, and predicts the side effect if we do not control the interrelated party transaction. These two parts explain the reason why we shall control the transaction. With no exception the unfair transaction do harm to all the interest parties. So the unfair transaction is the key target of the supervision. At the end of the theses, the author put forward some methods to control the interrelated transaction in order to restrict the unfair transaction in the maximum extent. By such means the interests of all the related parties such as investors (small and medium) creditors and state will be guarded.