Research On The Way And Governance Effect Of The China Securities Investor Services Center On The Exercise Of The Rights Of Listed Companies

China’s capital market are gradually developing and expanding,with an increasing number of investors and an increase in individual investors.In order to protect the interests of securities investors and innovate and develop investor protection mechanisms,China has established the China Securities Investor Services Center(ISC)under the condition of conforming to national conditions.In the securities market,the ISC and the administrative organs jointly play a supervisory and management role.Therefore,it is very important to analyze the way to exercise shareholders’ rights and analyze the mechanism of action for corporate governance.Based on principal-agent theory,information asymmetry theory,and shareholder activism theory,this paper mainly uses the method of case studies.This paper introduces the reasons why Guizhou Zhongyida Co.,Ltd(ZYD)faces the risk of delisting,as well as the process,mechanism and impact of the extraordinary shareholders’ meeting held by the ISC,and analyzes the corporate governance effect after the exercise.Through the analysis,the following conclusions are obtained:(1)As a minority shareholder,the participation of the ISC in corporate governance protects the rights and interests of small and medium-sized investors,and encourages small and medium-sized investors to actively exercise their shareholder rights and participate in corporate governance.(2)Due to the special nature of the ISC,its exercise can attract the attention of the company inside and outside,and affect the effect of corporate governance from two paths: internal and external to the company.(3)After the exercise of ZYD’s rights,the company’s system and personnel have changed,which has affected corporate governance and produced certain economic consequences.The main contributions of this paper are:(1)It is found that when a company is at risk of being forced to delist,the exercise of rights by the investment service center is conducive to reducing the risk of delisting,and at the same time providing more ways to protect the legitimate rights and interests of small and medium-sized investors.(2)As a shareholder,ISC can influence corporate governance by convening an extraordinary general meeting,increase the enthusiasm of small and medium-sized investors to participate in corporate governance,and strengthen internal supervision.(3)Due to its special nature,the ISC has a stronger appeal in the process of exercising rights and can jointly hold an extraordinary general meeting of shareholders with other major shareholders.(4)Sort out in detail the mechanism and impact of the ISC’s exercise of shareholders’ rights and the convening of extraordinary shareholders’ meetings,so as to provide reference for scholars to further study.The case company in this article is the first time that the ISC has exercised its rights by convening an extraordinary general meeting,which is groundbreaking.The ISC represents the importance attached by government authorities to investor protection and is an important force on the gradual maturity of the securities market supervision system.With the full implementation of registration-based IPO regime,the awareness of investor protection has been further enhanced.Therefore,analyzing the way in which the ISC exercises its rights and the consequences will be conducive to the stable development of China’s securities market,the implementation of the registration-based IPO regime,and the realization of the goal of economic modernization.