A Study Of The Legal Issues Regarding External Security By Listed Companies

External security of the listed company can not only reduce the transaction costs and guarantee the creditor's rights realization, but can promote effectively financing and the optimal allocation of resources. At the same time, it may also lead to the deterioration of operating conditions in listed company and increasing market risk and undermining the interests of shareholders or creditors. From the history of external security of the listed company, it has experienced that major shareholders of listed companies be reduced to an "ATM" phase, the formation stage of security circles, the security chain, guarantee phase for subsidiaries, associated guarantees sustaining and rising in total security phase. From the current status, problems in external security are mainly related to the number of listed companies secured and large amount of the security, the phenomenon of non-compliance guarantee outstanding, violation warranty information disclosure lags behind, the phenomenon of security circles, the security chain is still serious, a disguised secured act after another. So many problems are exist, they are relevant to laws and regulations which is inadequate, irrational in equity structure, not perfect corporate governance structure, not enough penalties for companies which is irregularities and relevant personnel.In this paper, from the perspective of company law to study the external security system, and, to some extent, legislation of this issue of external security situation in common law and civil law systems is described. In our country, while the existing company law (including the SFC, the China Banking Regulatory Commission the relevant rules and regulations) on the listed company's external security problems has more detailed provisions, and has played a more effective role, but still there is no fundamental solution to this problem. So, I think it should improve the relevant laws and regulations, improve the system of the board of directors, the board of supervisors and the independent directors, strengthen the security of information disclosure, increase penalties on illegal security in these areas to resolve the current in the listed company's external security problems.