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The handle http://hdl.handle.net/1887/87193 holds various files of this Leiden University dissertation.
Author: Romashchenko, I.
Title: Related party transactions and corporate groups : when Eastern Europe meets the
West
Propositions relating to the dissertation ‘Related Party Transactions and Corporate Groups: When Eastern Europe Meets the West’ by Ivan Romashchenko
1. RPTs are not conflicts of interest per se. It is more accurate to say that RPTs contain implied conflicts of interest, as a company may grant related parties additional advantages.
2. Essentially, two types of conflicts of interest can be identified: (a) using the company’s business opportunities and subsequently competing with the company; (b) using advantages accruing to the company and granting advantages to third parties. These types of conflicts inherently imply negative consequences for the company.
3. RPTs and indirect conflicts of interest are interrelated: the list of persons who are considered to be related parties depends on how broadly (or how narrowly) indirect conflicts of interest are defined.
4. The real economic reasons to view a party with a particular shareholding as a related party must lie in the powers which that shareholding confers on a person. 5. The idea under corporate legal theory that a group is a set of separate legal entities is no longer reflective of the growing demands of economic reality.
6. Applying rules on RPTs without sufficient regard for the group’s interest would cause the functioning of corporate groups to suffer from excessive regulation. 7. A factor that could hinder the success of legal transplants from western European jurisdictions to Ukraine is that the economies, capital markets and standards in those jurisdictions are more developed.
8. In contrast to how concentrated ownership came about in Germany and in the Netherlands, in Ukraine it resulted primarily from slow, non-transparent and destructive privatization processes.
9. Of the jurisdictions studied in my dissertation, Ukraine possesses the more detailed and nuanced procedural strategies for RPTs.
