Abstract

What is the foreseeable effect of the Chilean regulation on related party transactions with regard to large intra-group transactions? Does it succeed in deterring transactions whose purpose is to pursue benefits for the controller without generating clear benefits for the company? A first reading of the Chilean legal regulation would suggest that the legislative design of the RPT regulation sets a high standard. Consequently, it should discourage or avoid large intra-group transactions that do not pursue the corporate interest. However, the practical application of the rules shows that the regulation rests in one remedy: the publication of reports by independent appraisers, the effect of which is simply to improve —not too much— for the reference company, the conditions of large intra-group transactions.

Keywords

public corporation related party transactions intra-group transactions corporate group