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Protecting The Benefits Of Minority Shareholder: Some Law Aspects And Its Solution

Posted on:2005-07-10Degree:MasterType:Thesis
Country:ChinaCandidate:M Y PanFull Text:PDF
GTID:2156360125455875Subject:Economic Law
Abstract/Summary:PDF Full Text Request
In the first part, we give definitions of majority shareholder and minority shareholder. Minorities will be in weak position and their interests will be infringed when majorities try to maximize their interests. This in turn will affect the will of minorities to invest and the market stability. So it is necessary to protect the minority.In the second part, We give a historical review of protecting the benefits of minorities. From the rule of Foss V. Harbottle case; exception to that rule and its remedy in different countries, the protecting of minority is one of the most important change in the development of rporation law.Other countries' experience on the development of corporate law shed some light on how to build our own law to protect the minority.In part three, we discuss the law bases of the minority protection and theoretical foundation. The difference between shareholder equal principle and pro rata principle and its relation to minority protection are clarified.In part four and five, we discuss the deficiency of current companies in China and the possible reason of the minority benefit been infringed. One reason is that the meeting of shareholder been overlooked, another is the internal control of the insider. We propose that the most important reason is the capital majority determination principle. So we must have some reasonable control to avoid this.In part six to ten, We discuss the necessity of the establishment of the sincerity and trusty of majority from the point of not abusing of power. The voting power of majority need to be balanced and limited. It is necessary to establish the accumulated ballot system and related shareholder aversion system. We discuss in detail how to protect the minority. The benefit of minority can be protected by endow minority the power to summon and encourage minority to protect their benefit consciously and actively.
Keywords/Search Tags:Majority, minority, benefit protection, shareholder equality, capital majority determination principle.
PDF Full Text Request
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