Related Transaction And Chinese Company Law

Related transactions, namely transactions between associated party, have been a key point of study by scholars of foreign economics and law fields for a long time because of their complexity, hidden and destructivenss,and thus many complete theories and practical experience came out after its development and accumulation.Both principle as"Take off veil of Enterprises"stipulated in British and American Company law and regulations to associated enterprises in Germany Company law provide effective legal terms and practices to interests of medium-small company shareholders and creditors.Due to delay of establishment of Company law in China,most of scholars start their study on the basis of some well-known related transactions cases in listed ocmpanies and focus on regulations on related transactions stipulated in Securities Law,thus make solutions to regulate related transactions in listed companies and guide performace of security supervision department,which results in delay of complete research of related transactions especially delay of regulations on related transactions stipulated in Company law which serves as standards to essential commercial laws and in return results in over use of related transactions.On October 27, 2005, the 10th National People's Congress Standing Committee of the 18th meeting examined and adopted Amendment to Company Law,which found solutions to those essential,major and practial problems in urgent need to be solved and made basic rules to regulate related transactions.However, due to the lack of solid theoretical support,there are some points to be improved to the regulations of the related transactions in Company law(2005). Based on protecting interests of medium-small company shareholders and creditors and with clue of regulations to non-public unfair related transactions,this text reviews issues of law on regulations to related transactions in Company law with focus on comprehensive review to related terms and regulations in Company law(2005) by comparative study and analysis of practical cases and theoretical reasoning and reflect our deficiencies of regulations in Company law and make proposal and ideas to better regulate related transactions through Company law.