Study Of Related Party Transactions Of The Company Rules And Regulations

With the development of corporation and corporate structure trade happened. Related Party Transactions refer to the obligations and recourses instead of money transferred between related parties. Accelerate Cognate becomes wide-ranging and is allowed by law because it can corporate trade costs and promote corporate competitions. Based on its definition in law and an analysis of its characteristics, We can concluded: due to the inequality and specialty of the Related parties and the obscurity of transactions,these transactions could be easily be used by some groups and individuals as a way to obtain illegal interests, which will possibly harm the corporation and the investors, the holders and the debtors, even the whole social economic system, for much state owned assets will be lost. With the increase of the modern economic cooperation, the related party transactions will inevitably influence all fields more. Therefore, it is urgent to make strict regulations on related party transactions.However belong to the current regulations on the related party transactions in China mainly administrative regulations, which system. And all these regulations lack coherence enjoys low levels in the whole legal and a set of principles and ideas, which guide the whole regulations. So it is inevitable for these regulations to conflict with each other. Meanwhile the definition of the basic concepts and the design of the basic system and the establishment of the basic theory cannot be found yet till now.Regulations of affiliated transaction shall comprise three parts. The first part is a restriction on the behavior of people engaged in management; the second and third parts are both protections, the second part is to protect the minority shareholders from two aspects, i.e. entity law and procedure law, and in the third part, it is a protection for the benefits of creditors in different means.By means of comparing the legislations of States and territories in the world, this article illuminates detailedly the cognate trade's root, representation characters, and the...