Bridge over ocean
1 January 2009 Position Paper

Related-Party Transactions

Cautionary Tales for Investors in Asia

  1. Lee Kha Loon, CFA
  2. Abe De Ramos

Related-Party Transactions: Cautionary Tales for Investors in Asia introduces readers to the prevalence of related transactions in the region and how they affect the interests of minority shareholders. Focusing on Hong Kong, China, and South Korea, the report first highlights how the practice and concept of related-party transactions differ between Asia and the West. It then discusses how the nature of such transactions varies according to the different models of concentrated ownership within the region. Through examples of actual cases, the report identifies some of the ways related transactions have disadvantaged minority investors and then explores how effective the prevailing systems of checks and balances have been in protecting minority investors. Finally, the report explores how these protective systems could be improved.

Related-Party Transactions: Cautionary Tales for Investors in Asia View the full article (PDF)

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