Related Party Transactions Of A Financial Holding Company Law Regulation

Nowadays, finance and economy are developing very fast globally, and the competition of financial activities is drastic. As a financial organization whose purpose is to gain benefit, the financial holding company has become a type of company that can meet the requirement of economic development in the future. Through its Multi-financial business, it realizes scale merit and Synergy and raises its Competitiveness. However, in China's legal system, the status of financial holding company has not been established.In reality, there are several types of financial holding companies. To realize its main purposes, they adopt Affiliate Transaction. On the one hand, it has many advantages; on the other hand, it brings lots of risks. This essay aims at giving some suggestions about how to avoid these risks and the legislation of Affiliate Transaction.This paper contains five chapters:Chapter one introduces some basic issues of financial holding company and its affiliate transaction, including their concepts and the characteristics. In this chapter, the paper pays much attention to the legal characteristics of affiliate transaction of financial holding company.The second chapter is about the theoretical analysis of the legislation of Affiliate Transaction of financial holding company and its necessities. On the basis of economics and jurisprudence, it explains the theoretical gist of the legislation of Affiliate Transaction and how to establish an appropriate system. It points out that an effective legislation of Affiliate Transaction is an important factor that can affect the destiny of financial holding company and is very important to China's financial organizations.The third chapter specifies the main systems of legislation of Affiliate Transaction. It mainly introduces the systems of 'Piercing the Corporate Veil' 'Enhanced Obligation of financial holding company' 'firewall' 'independent director' 'information disclose' 'transaction limitation'. All these systems are necessary to establish an effective legislation of affiliate transaction.The forth chapter is a comparative research about the affiliate transaction of financial holding company. By comparing the legislation of affiliate transaction of America, EU and some international organizations, China can learn from them and get some inspirations.The forth chapter is a deep study in the legislation of affiliate transaction of financial holding company using the method of comparative analysis. By comparing and researching America, EU and some certain international organizations in their legislation together with their experience in the field where this paper focuses on, the paper contributes to what China can learn from it and what inspiration we can get which is helpful to our own legistion in the very field.