A Number Of Issues Related Party Transactions Of Listed Companies And Countermeasures

"Related party transaction"(RPT) means a transaction in which resource or liabilities is transferred between related parties, whatever it involves any consideration. When the relationship between the related parties is considered, the key is the essential of the relationship, not the form of it. The essential factor is up to whether one party can straight or not control or affect another, when the financial or business decisions are made. RPT can be classified according to content: purchase or sell merchandise; purchase or sell other asset except merchandise; offer or accept business; assure; bankroll; tenancy; surrogate; transfer the item of investigation and exploitation; permission agreement; representation corporation or corporation deputize other one carry through liability balance; the key manager salary.RPT is the outcome of market economy run to a certain phases. But A RPT has two sides because of the imparity essential status of both sides, on one hand, which could help saving expenses of business, improving finance status of corporation, building up corporation competition; on the other hand, it maybe influence listed companies independence and competition, provide measure for make prettify finance report forms, make country and investor lost via tax transfer, we cannot ban RPT, what we should do is to lead it on the right road. So we should investigate the problems of RPT and advance some countermeasures. It is of great importance to reinforce the regulation of RPT in order to protect the proper interests of the investors, improve the capital market efficiency, and maintain the stability and prosperity in our country.Manipulating profit using of RPT which mainly include the RPT in daily and the RPT in non-daily. Among of them, the RPT in daily mainly means the purchasing and sales between the related parties; the RPT in non-daily mainly include purchase or sell asset between the related parties, funds impropriate and the related parties sponsion.The disclosed RPT information on Listed Companies' temporary bulletin of Shenzhen during 2001 to 2004 shows that RPT widely exist among the business activities of listed companies. With the increasing strength of oversight of RPT in China, some new changes appear in the RPT conducted by listed companies, especially non-RPT and unfair. At the same time, correlation laws bring into effect in 2006 and new accountant rule carried into execution on Listed Companies in 2007, on the one hand, mend some shortcoming; on the other hand, maybe appear new question in RPT, such as listed Companies make use of fair value and so on. It will be keystone that new regulations are propitious to listed Companies, not be the ways of profit manipulatingAs far as the status quo of RPT in China are concerned, in combination with theregulatory experiences of overseas, this thesis put forward some relevant policies and suggestions on establishing the RPT regulatory system including the regulation on procedure; independent director system; information disclosure; tax adjustment.