The Role of Independent Directors in Monitoring Related Party Transaction (RPT) in Malaysia, Thailand and Singapore

Muhammad Umar bin Abdul Razak

2018

Abstract

Related-party transaction (RPT) represents a potential “self-dealing” between the company and its directors, material owners, officers, and investees and as such most countries require some form of additional monitoring over it. In dispersed ownership countries, such as the United States (US) or United Kingdom (UK), the companies are expected to adhere to the high standard of corporate governance as the owners and managers are separate. However, such expectation is challenging in concentrated companies such as in family-owned companies and government-linked companies that are common in selected ASEAN countries such as Malaysia, Thailand and Singapore. The objective of this paper is to analyse the role of independent directors in concentrated companies. Despite having several laws and policies governing RPT which are basedon the Anglo-Saxon framework, the dynamics of Asian companies’ structure may render them ineffective at the expense of the minority shareholders. The author employed doctrinal analysis of data from both primary and secondary legal sources from Malaysia, Thailand and Singapore. It is suggested these countries should review the existing regulatory framework for RPT by strengthening the role of the independent director. This paper will contribute to the existing literature by discussing the necessity of strengthening the role of independent director in monitoring RPT.

Paper Citation

in Harvard Style

Razak M. (2018). The Role of Independent Directors in Monitoring Related Party Transaction (RPT) in Malaysia, Thailand and Singapore.In Proceedings of the International Law Conference - Volume 1: i-NLAC, ISBN 978-989-758-482-4, pages 417-423. DOI: 10.5220/0010053404170423

in Bibtex Style

@conference{i-nlac18,
author={Muhammad Umar bin Abdul Razak},
title={The Role of Independent Directors in Monitoring Related Party Transaction (RPT) in Malaysia, Thailand and Singapore},
booktitle={Proceedings of the International Law Conference - Volume 1: i-NLAC,},
year={2018},
pages={417-423},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0010053404170423},
isbn={978-989-758-482-4},
}

in EndNote Style

TY - CONF

JO - Proceedings of the International Law Conference - Volume 1: i-NLAC,
TI - The Role of Independent Directors in Monitoring Related Party Transaction (RPT) in Malaysia, Thailand and Singapore
SN - 978-989-758-482-4
AU - Razak M.
PY - 2018
SP - 417
EP - 423
DO - 10.5220/0010053404170423