| In September 2005,China’s equity reform was fully launched,and the capital market began to enter the era of full eirculation.However,this reform has not changed the weak position of minority shareholders in listed companies in our country,and the phenomenon of "one dominant" of controlling shareholders is common.The major shareholders have emptied the listed companies and infringed on the interests of minority shareholders.Although equity concentration can alleviate the conflict between shareholders and managers to some extent and reduce agency costs,based on the current situation of information asymmetry between external investors and major shareholders,and influenced by the company’s equity structure,most corporate managers are directly appointed by controlling shareholders.Major shareholders can still use their own advantages to implement the interests of small and medium-sized shareholders.In addition,the current imperfect supervision system in our country makes the cost of violation of regulations of major shareholders lower,and also provides an opportunity for its interest encroachment.The advantages of internal and external conditions create the possibility for the interests of major shareholders to invade.When they have conflicts of interest with small and medium-sized shareholders,major shareholders can use the dominant equity to seek their own interests and occupy the rights and interests of small and medium-sized shareholders,thus reducing the value of listed companies.The business crisis of Tibetan holding has a long history.The reservation opinion issued by ruihua accounting firm on the company’s 2018 statement and the inquiry letter of up to 23 questions on the Shenzhen stock exchange undoubtedly expose the interests of the major shareholders of Tibetan holding.This paper adopts the case study method,selects the Tibetan holding as the research object,and makes a concrete study on the case of Xiao Yongming,the actual controlling person,using the absolute controlling position,to occupy the interests through various methods.In this case,the internal and external reasons for the excessive concentration of the equity structure,the non-standardized disclosure of information,the virtual existence of internal controls,and the irresponsibility of the intermediary agencies are the internal and external reasons for the major shareholders to invade their interests.When the actual hollowing out behavior occurs.The controlling shareholders use a variety of methods such as huge equity pledges,whitewashing financial statements,and non-fair related transactions to invade the interests,which eventually led to serious economic consequences such as a sharp drop in the company’s stock price,poor performance in excess yields,and a Tobin Q value below the industry average.According to the reasons and ways of the interests of the controlling shareholders,this paper puts forward countermeasures and suggestions from the aspects of corporate governance and external supervision,combining with actual cases.Through the study of this case,this paper finds that the way of interest encroachment by major shareholders is often hidden and diversified.It is very important for corporate governance to optimize the structure of equity checks and balances,expand the voice of small and medium-sized shareholders at decision-making levels,and give full play to the supervision and control functions of independent directors.It is the key to curb the encroachment of the interests of the controlling shareholders.In addition,as an important part of the company’s external supervisors,the intermediary should set its own position and standardize the business operation process;External regulatory agencies should also standardize information disclosure of listed companies,strengthen the entrusting voting system of minority shareholders,introduce the system of shareholder subrogation litigation,and effectively protect the rights and interests of minority shareholders. |
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