Related Party Transactions Legal Regulation

Related party transactions (RPTs) by listed companies have been a significant phenomenon in China's economical activities. For the purpose of studying this phenomenon from the legal perspective, this thesis discusses issues including theories of regulation on RPTs by listed companies by means of legislation, such practice in China, and how to perfect the relevant legislation, etc. Historical, comparative and positive methods are adopted here.This thesis draws to conclusions as following: Firstly, there are two sides of RPTs by listed companies - they might bring about efficiency on the one hand, and on the other could cause detriment as well. Therefore, they are necessarily to be regulated by law, by recognizing the rationality of RPTs, analyzing all parties involved, and following certain ideas. Secondly, due to the practical need to standardize RPTs by listed companies, regulating practice in China is developing continually. Regulations at present have been in both company law and securities law, which together primitively establish a system of legal regulation on RPTs by listed companies in China. Thirdly, the situation of RPTs by listed companies has been improved under the system, which, however, at large is not satisfactory. The regulation is not as effective as it should be. There are still many serious faults in current legislation on RPTs by listed companies which is expected to be improved, so as to promote further standardization of RPTs by listed companies in China.