The Regulation Of Corporation Law Regarding Chinese Director Self-dealing

Directors means the directors of self-dealing with the directors of the company where the directors themselves or with a direct or indirect, in which significant property interests in the business transactions between the entities,And the directors may derive personal benefit or indirect interest in trading companies and others. It includes transactions between the company and directors, and directors of companies and others who have an interest in transactions between the company and its directors and have significant economic interests in which the economic transactions between the entities.Directors self-dealing is a complex economic phenomenon, Operation in the country's widespread. Self-dealing on the one hand can help companies to maximize profits, the other directors in the transaction because there is a conflict of interest. Hence the need for directors to regulate self-dealing, self-dealing on the company to achieve a positive effect, and avoid its negative impact on the company.Countries, regions such as the United Kingdom, United States, France, Japan, and Korea and so on were self-dealing provisions of the directors, despite their different specific provisions of self-dealing. Most of these countries generally self-dealing not prohibited most self-dealing provisions of the approval authority for the board, only under certain circumstances approved by the shareholders, most of them to take procedural and substantive rules for the regulation of both specifications.China's "Company Law " Despite changes, but still there are many deficiencies, such as self-dealing on the relevant provisions of the directors and not rigorous abstraction, a number of procedural (such as the director of the disclosure obligation) the lack of provisions, some of the narrow range of application of the system . In view of our "Company Law" legislation defects, mutatis mutandis, countries, regions on the self-dealing provisions of the "Company Law"should be the scientific directors to define self-dealing, and improve the approval authority, the disclosure obligations of directors to establish a clear legal self-dealing Consequence.