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The Law and Finance of Related Party Transactions

Part of International Corporate Law and Financial Market Regulation

Luca Enriques, Tobias H. Tröger, Zohar Goshen, Assaf Hamdani, Sang Yop Kang, Jesse Fried, Edward Rock, Yishay Yafeh, Alessio M. Pacces, Jens Dammann, Curtis Milhaupt, Mariana Pargendler, Kristin Van Zwieten, Kon Sik Kim, Dan W. Puchniak, Umakanth Varottil, Paul Davies, Geneviève Helleringer, Amir Licht, Marcello Bianchi, Mateja Milič
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  • Date Published: June 2019
  • availability: This ISBN is for an eBook version which is distributed on our behalf by a third party.
  • format: Adobe eBook Reader
  • isbn: 9781108668798
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  • 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.

    • Provides extensive analyses of the subject from theoretical, empirical and comparative perspectives
    • Allows readers to inform themselves comprehensively not only on the state of the scholarly debate but also on existing policy options
    • Brings together various disciplines to present multifaceted insights and various methodological approaches
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    Reviews & endorsements

    'With patterns of concentrated ownership expanding even in the US, where tech entrepreneurs leverage control via higher voting shares, related-party transactions have become more ubiquitous than in the past. In this book, the world's leading academics address the new pattern, reflecting on how to police them. Don't miss it.' Ronald J. Gilson, Charles J. Meyers Professor of Law and Business, Stanford University, and Marc and Eva Stern Professor of Law and Business, Columbia University

    'Related-party transactions are common, and not only in countries with concentrated ownership. If not supervised, they may have socially negative consequences. Yet how to regulate them effectively is highly controversial. This book offers the latest empirical, theoretical and comparative law research as presented by the best law and finance scholars in the field. It simply must be read.' Klaus J. Hopt, Emeritus Director, Max Planck Institute for Comparative and International Private Law

    'This book is a collection of superb academic chapters on a core issue in modern corporate law and finance. As an invaluable resource with theoretical and comparative examinations by world first-class authors, the book is a must read for researchers, policy makers and others who are interested in the area.' Hideki Kanda, Emeritus Professor, University of Tokyo

    '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

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    Customer reviews

    17th Oct 2024 by UName-456522

    RELATED PARTY TRANSACTIONS REVISITED FOR THE SECOND DECADE OF 21st CENTURY An appreciation by Elizabeth Robson Taylor of Richmond Green Chambers and Phillip Taylor MBE, Head of Chambers, Reviews Editor, “The Barrister”, and Mediator It is always worth checking recent titles from Cambridge University Press (CUP). Browsing through the list we saw “The Law and Finance of Related Party Transactions” edited by Luca Enriques and Tobias Troger as part of a team of twenty contributors each looking after a part of the seventeen chapters. What we have brought together here are “a globe-spanning group of leading law and finance scholars” who bring us “cutting-edge research to comprehensively examine the challenges legislators face in regulating related party transactions in a socially beneficial way.” Nice phraseology for what consists of a mixture of daunting issues in complex and difficult legal and regulatory area. Enriques and Troger are to be congratulated in bringing together a fine expert team for the task. The editors describe their work as combining a “theoretical analysis of the foundations of efficient regulation with empirical and comparative studies”. Therefore, researchers (as primary users of the book) are given a chance to “draw their own conclusions on which regulatory responses work best under differing circumstances”. And that is no easy task. This title makes up part of CUP’s “International Corporate Law and Financial Market Regulation” series of titles. The team of writers have produced what they call “a careful selection of surveyed jurisdictions offers in-depth insight into a broad variety of regulatory strategies and their interdependence with socioeconomic and political conditions”. Thus, we get insights into much more than just mere law but much more profound corporate international regulation which will be attractive to a wide scholastic readership in our view. We feel that this work should be read by scholars, researchers policymakers, and graduate students interested in a critical, much-debated area of corporate governance. The contributors have listed a substantial number of areas of coverage in the seventeen chapters which may be of interest to researchers including of provision of an extensive analyses of the main subject area from theoretical, empirical and comparative perspectives. Additionally, we found that the work gives students substantial information which they can use not only on the state of the scholarly debate but also on existing policy options. What we thought was particularly helpful together various disciplines to present multifaceted insights and various methodological approaches. The hardback book was first published on 19th June 2019. It is also available as an ebook.

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    Product details

    • Date Published: June 2019
    • format: Adobe eBook Reader
    • isbn: 9781108668798
    • availability: This ISBN is for an eBook version which is distributed on our behalf by a third party.
  • Table of Contents

    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 Milič
    Bibliography
    Index.

  • Editors

    Luca Enriques, University of Oxford
    Luca Enriques is the Allen and Overy Professor of Corporate Law at the University of Oxford and ECGI Research Fellow. He has published widely in the fields of corporate law and securities regulation. He is a coauthor of The Anatomy of Corporate Law (3rd edition, 2017) and of Principles of Financial Regulation (2016) and has held visiting positions, among others, at Harvard Law School and University of Cambridge.

    Tobias H. Tröger, Johann Wolfgang Goethe-Universität Frankfurt am Main
    Tobias H. Tröger holds the Chair of Private Law, Trade and Business Law, Jurisprudence at Johann Wolfgang Goethe-Universität Frankfurt am Main. His research interests include corporate law, banking law and the economic analysis of law. He is Program Director Corporate Finance and Corporate Governance at the Research Center Sustainable Architecture for Finance in Europe (SAFE) and a Research Member of the European Corporate Governance Institute (ECGI).

    Contributors

    Luca Enriques, Tobias H. Tröger, Zohar Goshen, Assaf Hamdani, Sang Yop Kang, Jesse Fried, Edward Rock, Yishay Yafeh, Alessio M. Pacces, Jens Dammann, Curtis Milhaupt, Mariana Pargendler, Kristin Van Zwieten, Kon Sik Kim, Dan W. Puchniak, Umakanth Varottil, Paul Davies, Geneviève Helleringer, Amir Licht, Marcello Bianchi, Mateja Milič

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