On Delimiting A Boundary Line To Protect The Minority Shareholders' Interest

Since the rights of minorities are stepping into a sacred period, the legists pay much more attention to the minority rights also. It is epitomized by a lot of sympathy are poured into the minority shareholders in the area of company law. As the minority shareholders, they are standing in weak positions generally with their small proportion of shares. It means their legitimate rights and interests are easy to be trespassed by major shareholders under the majority rules. Thereby, we need to strengthen the protection of minority stockholders'rights and interests but never recommend the radical protection in meanwhile.The Corporation Law is a law which adjusting the company, a main type of commercial organizations. Its main value is to keep the social economic benefits growing and the essence is to promote and regulate the business profit-making activities rather than a legal protecting the weak. Over-protection of minority shareholders could weaken the majority shareholders'investment initiative, slow down the company's operating efficiency and contrary the company's principle of self-government. Therefore, we should protect the rights and interests of minority shareholders in a suitable range by setting rational boundary.By studying the attitudes of legislators, the judiciary and legal scholars in the protection of minority shareholders, the author found that the movement of minority shareholders protection has shown a growing trend. Due to the negative impacts which come from the radical protection of minority shareholders, the author would like to discuss the reasonable definition of the boundary about the protection of minority shareholders in this paper. The rule that"major shareholders hold the larger right and minority shareholders hold the smaller"should be followed with a view of reasonable expectations. We should also comply with the principles of corporate autonomy during the protection discussion. The author hopes that our experts could give much more concerns on the boundary of protection after read the mentioned above, to avoid the overcorrect when we are improving the systems of minority shareholders protection.