On The Balance Of Right And Interests Between Controlling Shareholder And Minority Stockholders

There are lots of incident of controlling shareholder infringed minority stockholders ' right and interests in our listed companies , since the securities business has come forth. There are severe agent problem between the Controlling Shareholder and minority stockholders. Lots of controlling shareholder is doing harmful to the minority stockholders. By their practical control to the company, through the connected transactions, the policy of distribution, the account report forms, etc. The causes include: the incompletion of transforming to corporation system, the lack of liquidity of stock equity structure, the lack of perfect corporation system, the lack of liquidity of stock equity structure, the lack of perfect corporate governance and practicable laws to protect minority stockholders, etc. This paper first concerns the reason and methods by with the minority stockholders are encroached on.Based on the personal respect and protection of each shareholder, the rights of medium and small shareholders should be protected. So many countries established system to protect minority shareholder's interest so that minority shareholder can be treated equally with minority shareholder. There is much is their experience that we can make use of to perfect the protective mechanism of minority shareholder's interest in listed company. This paper tries to put some measures to establish modern company system and perfect capital market to protect minority stockholders' rights and interests that accord with the situation of our country. Such as taking accumulated vote system, perfecting the system of throw daylight on information, establishing the system of control of controlling shareholder hold majority of stock and manager, etc.