1 Article 2 of the Company Law1The controlling shareholder, actual controller, directors, supervisors and senior managers of the company shall not use their relationships to harm the interests of the company. Anyone who violates the provisions of the preceding paragraph and causes losses to the company shall be liable for compensation.
2. According to Article 124 of the Company Law, if a director of a listed company has an association with the enterprise involved in the resolution of the board meeting, he shall not exercise the voting right on the resolution, nor shall he exercise the voting right on behalf of other directors. The board meeting can only be held when more than half of the unrelated directors are present, and the resolutions made at the board meeting must be passed by more than half of the unrelated directors. If there are less than three unrelated directors present at the board of directors, they shall be submitted to the shareholders' meeting of the listed company for deliberation.
3. Item 4 of Article 126 of the Company Law refers to the relationship between the controlling shareholder, actual controller, directors, supervisors and senior managers of the company and the enterprises directly or indirectly controlled by them, as well as other relationships that may lead to the transfer of the company's interests. However, state-controlled enterprises are not related only because they are controlled by the state. What is the taxable income of affiliated enterprises?
The tax authorities may adjust the taxable income or the income of affiliated enterprises in the following ways:
1, according to the price of the same or similar business activities between independent enterprises;
2. The income and profit level that should be obtained according to the resale price to an unrelated third party;
3, according to the cost plus reasonable expenses and profits;
4. According to other reasonable methods.
To sum up, the company law has clear provisions on the identification of related relationships. Generally speaking, other relationships that may lead to the transfer of company interests are related relationships.
Legal basis:
company law
Article 21
Controlling shareholders, actual controllers, directors, supervisors and senior managers of related party trading companies are prohibited from using their related relationships to harm the interests of the company. Anyone who violates the provisions of the preceding paragraph and causes losses to the company shall be liable for compensation.