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Journal of Humanities, Arts and Social Science

ISSN Print: 2576-0556 Downloads: 1348840 Total View: 9099736
Frequency: monthly ISSN Online: 2576-0548 CODEN: JHASAY
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ArticleOpen Access http://dx.doi.org/10.26855/jhass.2022.12.035

Research on Legal Regulation of Company Directors’ Self-dealing

Peixuan Yang

China West Normal University, China.

*Corresponding author: Peixuan Yang

Published: January 15,2023

Abstract

The director is a crucial operation mechanism in the current legal person system. In the transaction of legal person, the director's self-dealing behavior means that the director who has the decision-making power of the company makes use of his authority to make himself or his stakeholders trade with the company. On the one hand, because it is contrary to the loyalty obligation of directors and the principle of honesty and credit in the field of private law, the self-dealing behavior of directors should be prohibited from the legal or moral point of view. On the other hand, out of the pursuit of interests and efficiency, the directors with management authority can make use of the information and authority they have, and trade with the company as individuals, which can reduce the trading time and exchange for higher capital flow. In view of the above situation, this paper starts from the basic theory of directors' self-dealing behavior, reveals its basic legal connotation and characteristics, analyzes the reasonable basis for its regulation, analyzes the current legislative defects, compares the relevant systems outside the country, and explores the ways to improve this system.

Keywords

Self-trading of directors, Legal regulation, Improve the system

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How to cite this paper

Research on Legal Regulation of Company Directors’ Self-dealing

How to cite this paper: Peixuan Yang. (2022) Research on Legal Regulation of Company Directors’ Self-dealing. Journal of Humanities, Arts and Social Science6(4), 746-751.

DOI: http://dx.doi.org/10.26855/jhass.2022.12.035