Study Of The Protection For Profits Of Minority Stockholders In Connected Transaction

Thus many affiliates emerged,and affiliate transaction has become more frequently. It will make full use of enterprise resources reduce transaction costs,enhance business efficiency, and achieve economies of scale. But the holding shareders of related party has the absolute advantage in decision making, pricing, and so on. It is likely they will make the decision,which probably infringe upon the interests of companies, creditors, minority shareholders, if regulators are not in place.The new China Company Law on connected transactions generally use norms for listed companies, securities law and other laws and regulations for reference, and did not form its own system and some of them are still not perfect, many of the system can only apply to listed companies, it's insufficient for the regulation of connected transactions of non-listed companies, even conflict with securities law, accounting standards or other related laws.Therefore, the first part introduces the concept and characteristics of connected transactions, and summarizes the present situation encroaching on minority shareholders benefit in China. The second part emphatically introduces the main types of the violation of minority shareholders in connected transactions, The third part describes the laws of regulation of connected transactions and the protection of minority shareholders'benefit in foreign countries. In the fourth section, give an overview of the regulations of protection of minority shareholders in connected transactions,and analyze the deficiencies and shortcomings. The fifth part, proposed a legislative suggestion to establish a complete law system, which is systemic, sound, extended to non-listed companies and can coordinate relevant regulations or law, to protect the interests of minority shareholders in connected transactions...