Managing related-party transactions: Is there a better approach?

Corporate and Securities consultant Xin Fang wrote an article discussing the challenges and risks associated with related party transactions (RPTs) for the November issue of the Hong Kong Lawyer Journal.

RPTs often raise concerns about conflicts of interest, lack of transparency and potential harm to minority shareholders. If poorly managed, they can give undue advantage to insiders and damage investor confidence. While RPTs may offer strategic benefits, they require strong governance with clear disclosures, independent reviews and ongoing oversight to ensure fairness and protect stakeholder interests.