Legal Analysis Of Related Party Transactions Of Listed Companies In China

With the development of economy, affiliated company which is the combination among enterprises has been a universal phenomenon of economy and law. The companies become affiliated by capital participating and contract controlling. Then the affiliated companies carry out affiliated transactions, aiming to optimize the capital quality of the companies and improve the management condition. But affiliated transaction brings some negative influence with the social economy. It is common that listed companies of our country make use of the independent personality of subsidiary companies to carry out illegal affiliated transactions, which violates the interests of subsidiary companies, small and medium-sized shareholders and creditors.First of all,I intend to lead to the content of the discussion through a case. In the first chapter, I will introduce the case of the Guangdong Hengtong group co., LTD. trading and further analysis the focus of this case. By exploring this case, the definition of affiliated transactions, the information disclosure issues of affiliated transactions and the legal liability issues of the related subjects have been drawn out. Then from the second chapter, the author will analysis these topics in detail, such as the legal definition of listed companies’ affiliated transactions, the main legal issues in the information disclosure of listed companies’ affiliated transactions, and the legal liability of the related subjects. Among the legal definition of listed companies’ affiliated transactions, I will mainly elaborate the definition of related concept. Then I will analysis these issues appearing in the information disclosure of listed companies’affiliated transactions. Finally. I will study this topic that who shall burden the legal liability for the losses in affiliated transactions. In the third chapter, it is mainly about the solutions for the above problems. In our country, the affiliated transactions of listed companies shall be defined clearly by legislating. And the information disclosure system of affiliated transactions of listed companies must be perfected. Finally the legal liability issues in affiliated transactions of listed companies shall be consummated. The author believes, with the advancement of legislative work, our country will set up a systematic and normative law about the affiliated transaction in the future.