Overview

On 3 August 2009, Consob (the Italian securities market regulator) issued a new consultation document to regulate related party transactions carried out by listed companies and companies that issue financial instruments widely distributed among the public. The expiry date for public comment was 31 October 2009. Even though final rules might differ from those proposed, companies may wish to become familiar with the new regulations so as to plan future implementation appropriately.

The need for a comprehensive set of rules on related party transactions has been increasingly recognised by the market, particularly following certain corporate scandals in Italy and worldwide, as a way to protect minority shareholders from abuses by managers and majority shareholders.