Research On The Improvement Of Director Self-dealing

Director self-dealing is a common type of transactions in modern society without absolute advantages or disadvantages. However, in practice, director self-dealing often leads to the loss of company’s interests. Since the director self-dealing is the inevitable in commercial activities, the law must regulate director’s behaviors in self-dealing and protect the interests of the company and shareholders. As a derivative duty of director’s loyalty duty, self-dealing system is regulated in Company Law of the Peoples Republic of China. However, compared with other developed countries and corporate governance model in China’s market economic system, these regulations are both insufficient in the legislative concept and legislative structure.This article attempts to research the relevant issues of directors’ self-dealing system through historical analysis, comparative analysis, literature analysis, case studies and other research methods. After analyzing and discussing the legal definition, the nature of the conflict of interests, the substantive and procedural judgment standards, as well as legal liability, some suggestions will be given to the legal regulation of director self-dealing system ultimately.