The Law and Finance of Related Party Transactions

This is a comprehensive look at the challenges legislators face in regulating related party transactions in a socially beneficial way.

Luca Enriques (Edited by), Tobias H. Tröger (Edited by)

9781108453738, Cambridge University Press

Paperback / softback, published 9 June 2022

538 pages
22.8 x 15.1 x 2.8 cm, 0.779 kg

'Governance of related party transactions is at the very heart of corporate law, yet it remains a significant challenge in most jurisdictions. This book delivers both deep knowledge and keen insight into the best approaches to this challenge.' Andrei Shleifer, John L. Loeb Professor of Economics, Harvard University

A globe-spanning group of leading law and finance scholars bring together cutting-edge research to comprehensively examine the challenges legislators face in regulating related party transactions in a socially beneficial way. Combining theoretical analysis of the foundations of efficient regulation with empirical and comparative studies, readers are invited to draw their own conclusions on which regulatory responses work best under differing circumstances. The careful selection of surveyed jurisdictions offers in-depth insight into a broad variety of regulatory strategies and their interdependence with socioeconomic and political conditions. This work should be read by scholars, policymakers, and graduate students interested in a critical, much-debated area of corporate governance.

The law and (some) finance of related party transactions: an introduction Luca Enriques and Tobias H. Tröger
Part I. Theoretical Framework and Policy Issues in Regulating RPTs: 1. Corporate control and the regulation of controlling shareholders Zohar Goshen and Assaf Hamdani
2. Optimally restrained tunneling: the puzzle of controlling shareholders' 'generous' exploitation in bad-law jurisdictions Sang Yop Kang
3. Powering preemptive rights with presubscription disclosure Jesse Fried
4. MOM approval in a world of active shareholders Edward Rock
5. Institutional investors as minority shareholders Assaf Hamdani and Yishay Yafeh
6. Procedural and substantive review of related party transactions (RPTs): the case for non-controlling shareholder-dependent (NCS-dependent) directors Alessio M. Pacces
7. Related party transactions and intragroup transactions Jens Dammann
8. Related-party transactions in state-owned enterprises: tunneling, propping, and policy channeling Curtis Milhaupt and Mariana Pargendler
9. Related party transactions in insolvency Kristin Van Zwieten
Part II. Regional- and Country-Specific Insights: 10. Related party transactions in East Asia Kon Sik Kim
11. Related party transactions in Commonwealth Asia: complexity revealed Dan W. Puchniak and Umakanth Varottil
12. Related party transactions: UK model Paul Davies
13. Related party transactions in France: a critical assessment Geneviève Helleringer
14. Germany's reluctance to regulate related party transactions Tobias H. Tröger
15. Be careful what you wish for: how progress engendered regression in related party transaction regulation in Israel Amir Licht
16. Enforcing rules on related party transactions in Italy: one securities regulator's challenge Marcello Bianchi, Luca Enriques and Mateja Mili?
Bibliography
Index.

Subject Areas: Financial services law & regulation [LNPF], Banking law [LNPB], Financial law [LNP], Company, commercial & competition law [LNC], Law [L], Corporate finance [KFFH], Economics, finance, business & management [K]