Font Size: a A A

The Studies About Of The Legal Mechanism Of Cross Holdings Of Companies

Posted on:2006-04-18Degree:MasterType:Thesis
Country:ChinaCandidate:X J FangFull Text:PDF
GTID:2166360152485015Subject:Economic Law
Abstract/Summary:PDF Full Text Request
With the development of the commodity economy, the form of company from operating directly by shareholders to by officers becomes more and more complex, the power of company management removes from shareholders to directors. Besides hereinabove, the relations between more complex because of the investment by companies each other, cross-holdings is one of those intricate relations. Cross-holdings of company can provide some positive influence such as reducing the cost of exchange, stabilizing the supply and sell price, providing the effect of cooperation. Though there are some advantages of cross-holdings, it can also be abused, and lead to damaging the rule of maintenance of capital, influencing the equity between the shareholders, and insider-control. In our country, the early legislation provide some provisions to limit the cross-holdings, but regretfully, the "Corporation Law"on enforcement now does not provide such provisions. This is a problem should be settled by the recent amendment of Corporation Law. In this paper there are some advices on this issue. This paper falls into six parts: The first part is general introduction. Through the analysis of the concept of cross-holdings and the discussion of the direct and indirect hold of shares and the rule of Substance Over Form, we can define cross-holdings better. The second part introduces the derivation and development of cross-holdings, illuminating that the cross-holdings is an inevitable result of the relationship of companies. The third part brings forth the modality of cross-holdings, which is a base of the discussion of the analysis hereinafter. The fourth part discusses the advantages and disadvantages of cross-holdings. This is an important part of this paper. The fifth part introduces the relevant provisions of corporation law of America, German and France, which are the most representative kind of such provisions. The sixth part provides some advises on the limitation of cross-holdings on the base of the introduction of the history of the legislation of cross-holdings.
Keywords/Search Tags:Cross-holdings, the Rule of Maintenance of Capital, the Equity of Shareholders, Insider Control
PDF Full Text Request
Related items