Ordinary course of business policy and its effect on related party transactions regulation

Abstract

This paper analizes how ordinary course of business transactions regulation affects the effectivity of the related party transactions law, for which the foundations and problems of ordinary course of business transactions are doctrinally analized, and self-regulation of IPSA corporations are empirically checked, by the comparison of procedimental and substantive aspects contained in ordinary transactions policies produced by those corporations. It is observed that chilean corporations are reluctant to self-regulate, which increments the risk of tunneling and, also, it is concluded that there is ample scope for improvements in regulation, without turning it excessively burdensome.