Research On The System Of Proxy Solicitation

Limited Liability Stock Corporation enjoys a vital and predominant place in market economy, and meeting of shareholder is an agency with power of electing directors and drawing critical decisions. However, for the highly concentration of shares, few minority shareholders are willing to attend meeting of shareholder. As a result, proxy becomes necessary. In reality, for sake of putting corporation under their control, both managers and other shareholders try their best to utilize proxy solicitation to win votes from minority shareholders. If succeeded they can be elected as directors. But there is no relevant regulation on proxy solicitation in our country's law.In accordance with Corporation Law, Security Law and Guide for Regulation of Listed company issued by Chinese Security Executive Committee and other regulations issued by security administering agencies of the State Council, together with legislation of proxy solicitation in America and Taiwan. This paper gives a deep analysis to the definition of proxy solicitation, its juridical basis, and the significance of its existence and the shortages of today's related laws in China. Then, legislative suggestion for improving the system of proxy solicitation is given. It points out that the maim problems to be solved in protecting the interest of minority and perfecting the legislation of our country's market economy are how to regulate the behavior in proxy solicitation and reinforce the management mechanism.