Related Party Transactions: Analysis of Proposed Art. 9c of Shareholders’ Rights Directive

Abstract

Related party transactions (RPTs) have become a recognised issue of corporate governance. With the proposal for a new Art. 9c of the Shareholders’ Rights Directive 2007/36/EC, rules on RPTs are intended to become an even more integrated part of the codified corporate governance framework applicable on the Internal Market. The European Commission proposal contains a provision that introduces more shareholder oversight and transparency of RPTs. This article offers an assessment of the proposal from corporate governance perspective and a critical analysis of the proposed provision’s text, e.g. its group related implications.