Physical Review And Procedure Review Of The Fairness Of Related Transactions

In this article, I analyze the concept of related transactions firstly, I think related transactions is transactions between related parties, the concept of related transactions depends on the definition of related parties primarily, generally view,that there is control relation or significant impact relation between the two or more parties, the determine of related parties will also be impacted by legislation environmental. This article lists the representative legislation of the related parties, so that the scope of related parties will be better understudied.The second part of the article, describes the development and changes of physical review and procedure review in the United States and the United Kingdom, I have introduced some of the typical cases in order to illustrate the problem better. This paper argues, that the combine of physical review and procedure review of the U.S. are good, give full play to the physical review and procedure review. The formation of such a review model have a very close relationship with the corporate governance of the U.S. and the system that shareholders have the right to relief. Britain capitalist economy has a long history for several hundred years,but Britain related transactions review system is not as good as that of the United States, the United Kingdom of related party transactions review focused primarily on the level of physical review, procedure review is rarely, it addressed by that the United Kingdom has been pursuing the principle of majority vote on the capital.The third part of the article analyzes the lack of related transactions review of Chinese and made a comprehensive proposal. Currently, in China, shareholding structure is unreasonable, State-owned shares, due to the dominance, inadequate relief measures, there are other defects, which makes that the related transactions review of China, should adhere to the principles of physical review-based,and take different rules of review to different situations.I put forward some thought at last.