Related Party Transactions, The Legal Regulation

With the development of market, related transactions, as an economic phenomenon in market, is becoming more and more important in business operation of numerous countries. It can cut down trade cost and keep profit within and fulfill the strategic ambition of company or group much better than market adjusting, and thus benefit associated company directly. Objectively, however, it also exerts so many passive impacts that it would cause harm to the legal interests of medium or small investors or creditors and lose a part of national tax collection and national assets and strike social credibility and imperil normal resources disposing and market competition system. For this reason, based on agreement on related transactions, each country lays down necessary regulations on it and invariably improves them to optimize associated trade and restrain its disadvantages. Given this, based on comparison among law of each country and analysis of law of our country, this thesis presents some suggestions of regulating related transactions in China reasonably at the standpoint of company law. There are three parts in this thesis:Part one is mainly concerned with identifying the basic definition of related transactions, including its main body, standards, features and forms of its identification based on the fact that they are premises for regulating related transactions. Part two is mainly concerned with the analysis of origin of related transactions and its harms and further proves the necessity of regulating related transactions. Part three is mainly concerned with the analysis and improvement of regulations for related transactions in our country based on the analysis of regulations for associated countries in other countries.