Related Party Transactions: Lessons From Regulation in Greece

Abstract

Abstract Transactions conducted between a SA and its related parties are at the forefront of domestic and foreign theory. The vast interest in this issue is justified by a series of scandals in the international financial system, which demonstrate in the best possible way that the law of dealing with related parties is not only law in the books, but also law in practice. This study aims to provide a legal analysis of related party transactions using Greek law as an example. It first highlights the risks arising from these transactions and then the mechanisms designed to deal therewith. Furthermore, it describes the incorporation of the EU rules into the Greek legal system and then it attempts to answer several key issues arising from the implementation of the provisions on RTPs. This paper concludes with an overall assessment of the application of the new institutional framework with regard to transactions of a SA with its related parties.