Regulating Connected Transaction Through Company Law

With the development of modern company, the related companys or related partys often undertake the connected transactions in order to get more interests. However, the connected transaction is comparatively complex economic phenomenon .On one hand, it is beneficial for related partys or related companys to save product cost;cut down transaction fee;upgrade companys' ability of competition in market. On the other hand , due to the special relationship of interests and controlling or controlled among the related partys or related companys ,they usually do not abide by the principle of equal transaction, cause damage to market rule and result in the loss of others related partys' interests(such as investors, creditors ,the country) .So, it is necessary to allow the connected transaction to exist in some extent;meanwhile ,we should control unfair connected transactions.The connected transactions widely exist in Chinese companys , specially in Company Group, Mother-son Company, Juncture Company, much more in the Shang-shi company. They seriously effected the construction of Chinese market-economy system;damaged equal order of market competition;led to creditors' or investors" interests loss .Therefore , it is very necessary to regulate the connected transaction .The ways of connected transaction are diverse, and connected transaction could effect lots of aspects of society. We needs to use different law to regulate connected transaction ,such as Company law;Securities law;Anti-monopoly law;Revenue law and so on. In the view of limit of data and writer"s ability, this article only try to reseach how to regulate connected transaction through company law.