The Judicial Review Pattern Of China’s Related Transactions

With the continuous development of economic globalization, countries enterprise rapid development under the background of economic globalization, the enterprise scale expansion, business management mode constantly updated, with close ties to the enterprises are gradually increasing, such as:corporate parent, subsidiaries, holding companies, actual controllers, such as taking a stake in the company, more and more related party is closely related to the enterprise. In addition, the enterprise’s profitability and the type of market area, limit, makes the related party transactions under the market economy as a kind of inevitable economic phenomenon.Related party transactions is a kind of different from ordinary commercial trade business practices, it is not only regulated by law, but also by the special, special laws to specification. The essence of the associated business determines its is a double-edged sword. Related party transactions on the one hand, can simplify the process, reduce unnecessary procedures, improve efficiency, and can also reduce trade expenses, for the benefit of the enterprise for greater extent; On the other hand, hidden risks in related party transactions, is likely to damage the interests of minority shareholders.In today’s China’s economic life related transactions are not uncommon, in the related transactions, frequently, the affiliated party using the trading violate the interests of the other small and medium shareholders. This link in order to achieve their own interests, through the connection transaction way to damage the interests of other non-affiliated, destroy the economic order, causing confusion in the market economic order, and thus endanger the whole economic development in our country. The existence of related party transactions, therefore, the commercial behavior, there is a big potential risks, so its regulation is very necessary. Domestic scholars studies of related party transactions and the existing laws and regulations are relatively concentrated in the related transactions of information disclosure, the effectiveness of the contract, from several aspects, such as national regulation prior more focus on the related transactions.In China’s existing laws and regulations, although in2014the newly revised the company law, the accounting standards for enterprises no.36-related party disclosure (2006), the public offering of securities firms information disclosure content and format guidelines, the listed company’s articles of association to guide and other legal norms, as well as the relevant provisions of the management practice of listed companies has certain regulation of related party transactions, but still not enough. Due to the related party transactions is different from general business transaction attribute, usually accompanied by information asymmetry in the process of trading, as a result, coupled with the influence of the structure of the company, the harm of related party transactions is to be reckoned with, such as front is simply engaged in national legislation, in the matter to strengthen the regulation to national standards, in addition to bring countries great burden to the state, and the connection transaction regulation effect is not ideal, I’m afraid. Therefore, the author suggested that the change an Angle to the disadvantages of resolving the related transactions. The author thinks that, with the connection transaction, monitoring approaches to advance the trinity, in addition to perfect legislation, strengthen the national regulation, but also through judicial judicial supervision, as to regulate the last barrier of related party transactions. The author suggested in our country at present, based on the existing law, establish conforms to the actual connection transaction the judicial review system of our country. Because the judicial neutrality, prudential, the strict procedural, the related party transactions is very useful to resolve the problem.Based on the comparative analysis of related party transactions, on the basis of correctly identified related party transactions, analysis summary problem of related party transactions in the market economy at present stage in our country, explore the causes of problem, analysis the necessity and feasibility of strengthening judicial review. Besides, through the comparative analysis of related transactions take judicial review mode abroad (mainly in Britain and the United States, for instance), draw lessons from foreign related legislation, and combined with the actual situation of our country, to our country related transactions should choose what kind of judicial review and the establishment of the model put forward some Suggestions, to explore the related transactions of conform to the reality of our country standard of review and judicial review mode, in order to maintain and promote the healthy development of socialist market economy in our country.