Study On "Shares Offset Debts": Hunan TV & Broadcast Intermediary Case

"Shares to offset debts"is an important policy put forward by Chinese Securities Regulatory Commission (CSRC) and State-owned Assets Supervision and Administration Commission of the State Council (SASAC) to cure fund embezzlement by pilot company. The policy has attracted a lot of attention and discussion from domestic scholars and shareholders. As a policy which will impact China's economy broadly and for a long time, whether can it well solve fund embezzlement? Whether does it worthwhile to generalize? How to generalize? What kinds of things should be paid more attention to while it was generalizing? Such kind of things will not only concern how to safeguard the interests of minority shareholders, but also will affect the further development of Shenzhen and Shanghai stock markets, impact the cooperation governance, the property right institution reform, market economy's development and perfection, and or so. Discussing and studying "Shares to offset debts"is very significant. Through careful study the characteristics, nature, the system of "Shares to offset debts", examining "Shares to offset debts"case of Hunan TV & Broadcast Intermediary Co. combining with theory demonstration and abundant data's support, the paper dig into the policy to analyze its impact on stock markets, the interest of related parts and the policy's strengths and weaknesses. The paper insists the implementation of "Shares to offset debts"will have important impacts on public company, its control shareholder, its minority shareholders, its debtors and concerned government departments. As to the public companies, "Shares to offset debts"makes its investing value come back and exert negative influences to its cash flow and financial condition, but it will not change the company's profitability, and the results impacting on cooperation governance is uncertain. The control shareholders will become the biggest beneficiaries. Due to repayment way is alternative, "Shares to offset debts"is not going to weaken control shareholder's dominate power in the public companies. Inversely, "Shares to offset debts"gives control shareholders the chance to get high quality assets with inferior assets and cost nothing, to legalize its fund embezzlement and to obtain a huge opportunity to employ "Shares to offset debts"policy and profit from it. As to the minority shareholders, it is certain to get back their lost future partly due to control shareholder's fund embezzlement, but it's status of being exploited by control shareholders is still unchanged. As to the debtors, "Shares to offset debts"increases the financial and bankrupt risk of the public company, and increase the possibility of not getting back their money. As to the government department, "Shares to offset debts"will make the monitor cost go up and authority down. "Shares to offset debts", as a policy will be sure to stimulate broad responses, is not heal-all. it is unable to settle down thoroughly the fund embezzlement and also can not be confused with All-circulation. Like all the other policies, "Shares to offset debts"has its strengths and weaknesses. On the one hand, "Shares to offset debts"partly and temporarily solve fund embezzlement, introduce competitive system into the public company direct board, improve the quality of assets and make helpful research for...