Controlling shareholders face new rules to protect minority investors.
Controlling shareholders can take advantage of companies by making deals with themselves, hurting minority shareholders. Company laws and court standards often don't do enough to stop this. Belgium, France, and the Netherlands have weak approval processes for related party transactions. A new rule says minority shareholders need better protection from self-dealing. Countries can use different methods like a vote from most shareholders, approval from independent directors, or court review to prevent this.