Related Party Transactions Legal Regulation

With the development of corporation and corporate structure, the connected transaction happened. The connected transaction of listed companies of our country increased quickly year by year. It likes a double sword-edged, on the one side, it can cut down the transaction cost and rise the whole competition ability of enterprises; on the other side, the unjust connected transactions have caused a great deal of troubles, it supports many chances of controlling profits and transferring revenues for controlling shareholders, finally, it impairs the interest of middle and small shareholders and creditor. The article, adopting the approach of comparative law, on the basis of investigating and analyzing the present situation and effect of the connected transactions of listed companies in our country, reviews and analyzes how to standardize unfair the connected transaction in order to protect the interest of middle and small shareholder in listed company, discusses the general theory about legal provisions of the connected transactions, and brings up policies ideas about amending company law of our country.In view of the thought upward, the article consists of five chapters.Chapter I is a summary of connected transactions of listed company. It reviews the definitions and features of connected transactions in law。Chapter II analyzes connected transactions in Chinese listed company. It goes deeply into analyzing the present situation, action, intention and reason.Chapter III reviews the history of regulation of law. Comparing among America law of the connected transaction, Britain law and Japan law, it puts forward value goal of the regulation of law.Chapter IV discusses the present situation of legislation of connected transactions in our country, and then analyzes the present situation of legislation about the connected transactions, points out the defects and the shortcomings.Chapter V brings up legal suggestions restricting connected transactions. This chapter is the most important. Form defending beforehand to relieve afterwards toward connected transactions, regulation of law should be consist of a series of systems, such as the decision system of general meeting of stockholders, the restricting system of voting power of shareholders, the system of independent director, etc.