Legal Protection Of The Right Of Minor Shareholders In Securities Market

During three-year study as a master of law in University of International Business and Economics, because my major is international business law with a concentration in Securities Law and due to my personal interest, I have been focusing on the development of Chinese Stock Market and the regulation of Chinese Security Market. With more and more knowledge, I discovered a lot of problems of the regulating system in Chinese stock market. What makes me most surprising is the infringement of shareholder's right especially the right of minor shareholders. Therefore, I began to study the protection of the right of minor shareholders in stock market.We must admit that the influence of minor shareholders is very great during the process of development of Chinese stock market. However, the infringement of the right of minor shareholders becomes the barrier of further development of the stock market. Among all the problems, the most obvious and harmful problems are information disclosure, insider trading and manipulation of market. A lot of listing companies does not comply with the regulations and laws. In addition, the system of regulation and the governing laws are not sound. Though the publication of "Securities Law" has made great contributions to the development of stock market. The law has some problems especially in terms of the protection of the right of minor shareholders. After comparing with the advanced governing and regulating systems abroad, I hope my article could make some good and significant suggestions to this problem.There are six chapters in this article.Chapter one mainly talks about the definition of minor shareholder and the right of minor shareholders. After comparison between major shareholder and minor shareholder and comparison between the right of common shareholder and minor shareholder, the special character of minor shareholder is very obvious in terms of the economic strength, the influence on the management of company, the knowledge and the acquisition of information. The right of minor shareholders is divided into two aspects which are self-right and common right.Chapter two mainly deals with the analysis of the infringement of the right of minor shareholders in stock market. The infringement of self-right is mainly on the right of claim of dividend and the right of priority on new stock. The infringement of common right is mainly on the right of voting and the right of knowledge. The infringement on stock market is mainly caused by insider trading, imperfect information disclosure, affiliated trade and manipulation of stock market.Chapter three is mainly on the protection of internal right of minor shareholders with regard to the self-right and common right. Some ideas are brought such as the establishment of voting exclusion system, cumulative voting system and right of checking ledger. In terms of internal protection, the main work is to improve the system of shareholder's meeting and the system of regulating the right of board of directors.Chapter four is mainly on the protection of external protection of the right of minor shareholders in the stock market. The main problem is to improve and strengthen the regulating system of stock market especially on insider trading, information disclosure and manipulation of market.Chapter five is mainly on the systematic protection of the right of minor shareholders. This is divided into three aspects which are advance remedy, regulation of market and remedy system aftermath. I mainly discuss the system of representative suit system or the so-called abrogation system.Chapter six is mainly some problems and some notes on the protection of the right of minor shareholders in securities market such as the market efficiency.The purpose of the article is to give an overall idea and the main structure of the protection of the right of minor shareholders in Chinese securities market. There must be some problems and defects of the article due to my immature knowledge and sense of law. I hope this could attract more law professiona...