Related Party Transactions Of Listed Companies Legal Issues

Connected business is a phenomenon frequently coming out in economic field. Like a coin has two sides, connected business is of advantages and disadvantages to the development of economy. With regard to the connected business conducted by companies on market, it is of unique characteristics in its origin, operation, information discovery and in its supervision by law. To make a close study on the connected business conducted by companies on the market is of significance in effectively regulating companies on the market. In this thesis the connected business conducted by companies on the market is discussed in details. Firstly, the author defines the connected parties in connected business conducted by companies on the market. Then an analysis is made on the reasons for the appearance of connected business. Secondly, the author expounds the supervision over connected business conducted by companies on the market under Company law, Securities law and Tax law. On the basis of this, the author puts forwards his views about the above mentioned problems.Including the introduction,.the thesis contains four parts. It is about 3,7000 words long.Part I Introduction In this part, the author introduces the significance of making a close study on the connected business conducted by companies on the market. Then a sketch of thesis is made.Part II On Connected Parties and Connected Business. For connected business is closely related to connected parties, it is necessary to define connected parties before discussing connected business. As for connected parties, a comparison is made between some typical countries and districts. After the comparison, the advantages and disadvantages of various definitions given by these countries and districts are pointed out. Based on this, a definition on connected parties is set forth by the author. Similarly, acomparison on connected business is also made for the purpose of concluding a more exact definition on connected business. Moreover, the characteristics and standards for classification for connected business are summed up in this part.Part III The Origin of Connected Enterprises and Connected Business Conducted by Companies on the MarketSince connected enterprises are the basis for the existence of connected business, the author starts the analysis on connected business from that on connected enterprises. As for connected enterprises, the reinvestment and acquisition, two underlying reasons for the origin of connected enterprises are expounded. Then in accordance with the situations of companies on the market in China, the author comments on the unique backgrounds for the origin of connected enterprises and connected business conducted by companies on the market in China.Part IV The Supervision Over Connected Business Conducted by Companies on the MarketIn this part, the author discusses the supervision over connected business conducted by companies on the market performed by some typical countries and districts from the aspects of Company law, Securities law and Tax law and Regulations on accountants. On the basis of this discussion, the author points out the defects in legislation on the supervision over connected business conducted by companies on the market. For example, the company law of PRC lacks in protection and remedies for company, shareholders and creditors. Furthermore, the suggestions on offsetting the defects in legislation are set forth. Last but not least, the author refers to the jurisdiction and application of law over disputes arisen from connected business conducted by overseas companies on the market.