The Discussion Of Related-party Transaction Contract’s Legal Force

Related-party transaction contract are essentially neutral concept.Fair related-partytransaction can improve the efficiency of the business idea, and therefore should bepromoted.But unfair related-party transaction shall undermine the interests of the company asa whole,minority shareholders and creditors of the company,just because of related parties’control of the will of the company.This article focused on exploring related-party transactioncontract validity elements, effectiveness and legal regulation issues,to seek better ways ofregulation of related-party transaction contract.The research object of this article was defined in the part one.Through the analysis ofassociated concepts of the related-party transaction, we focused our research on the basicself-transaction.And then we discussed on related-party transaction’s particularity of theestablished requirements, as well as the challenges posed on traditional civil law theory.Problems presented in part two of the article were related to validity judgement ofrelated-party transaction contract.This section discussed on the elements of the validity ofrelated-party transaction contract, as well as the unfair related-party transaction contract’seffectiveness state.China’s legal problems did not make anything on the validity problems ofrelated-party transaction contract,so,we summarized the validity elements and the specificcontents of the elements from the general constitute elements of a contract and foreigncountries’ legislative pattern in this case study.And after that,we illustrated the rationality ofthe contract’ revocable with multiple effect on related-party transaction contract status, anddiscussed the theory basic of that.Part three of the article revealed the shortage of related-party transaction contract’s effectrules in China’s contract law and company law.Related-party transaction contract is notincluded in the adjusting area of our contract law.At the same time,company law makes nospecific provision on related-party transaction contract’s effect rules. The result is that there isno applicable law about this kind of contract.And the stakeholders’ interests can not beprotected effectively.Part four of the articles presented my perfecting views for the above discussion on thecurrent situation of our related-party transaction contract’s effect rules lawmaking.We thinkthat the validity issues of the related-party transaction contract belong to cross-cutting issues in the field of contract law and company law,and,we shall go about the reconstruction andimprovement of this issue from the view of company law as well as contract law.So thisarticle put forward the suggestions on the revocation rule’s establishment in contract law,at thesame time,expressed personal views on the perfection of the disclosure system and votingrights ruled out system in corporate law.