Identification criteria of related party transactions

Legal analysis: how to identify a transaction as a related party transaction can be judged from the following three aspects: first, in the related party transaction, the economic status of both parties is in an unequal state. In other words, one party to a transaction has control over the other party or can have a significant influence, which puts it at a disadvantage, so the whole transaction can only be completed on the basis of unilateral expression of the relevant parties, not through the consent of both parties; Secondly, insiders have conflicts of interest in related party transactions. In related party transactions, the directors, senior managers or controlling shareholders of the company should fulfill their loyal obligations to the company, but they also have the need to pursue their own interests, so insiders will have irreconcilable contradictions between the company's interests and their own interests; Thirdly, objectively, there is a huge unfair risk in related party transactions. Due to conflicts of interest, related party transactions are likely to infringe on the interests of the company and the interests of minority shareholders or creditors.

Legal basis: Article 21 of the Company Law of People's Republic of China (PRC), the controlling shareholder, actual controller, directors, supervisors and senior management personnel of the company shall not use their relationship 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.

skill

The above answer is only for the current information combined with my understanding of the law, please refer carefully!

If you still have questions about this issue, I suggest you sort out relevant information and communicate with professionals in detail.