the connection transaction
Again, “hand vote” is hard to avoid the lack of mechanism of unfair associated business behavior. Because the connection transaction exist in the large gap in malpractices for personal gain, therefore it must be strict constraints on associated business. The stock of economy, connection transaction is divided into the policy-making connection and trade association, the market economy in developed countries, although to trade association has mbt shoes uk strict constraint conditions, but overall, the related transaction control of key is the policy-making connection not business association. But in our country, the constraints of affiliate transaction is more strongly reflected in trade association of the policy-making connection, but the relatively weak constraint mechanism. Although the code of corporate governance of listed company shareholders have introduced the related decision-making items for withdrawal system, but overall, in big shareholders full control of the listed company decision-making mechanism, caused by the policy-making connection associated business has become market and a common phenomenon in the listed companies, and thus to give big shareholder brought great benefits and give the holders of tradable shares in a grave damage caused. Whether starting or seasoned, whether the match or debts, have led to turn of non-tradable shares of tradable shares the huge transfer payment, and become the unfair distribution mbt shoes usa of injustice, and the system of deep roots. Therefore, under the condition of the equity division of the listed company, must be produced by the policy-making connection strict restrictions associated business. Big shareholders for their own interests and decision-making is the essence and the most significant connection transaction, no vote of tradable shares and identity, this decision cannot become the company’s will, and thus more cannot become the company’s practice.
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