Legal Problems Of Shares Full Circulation

The rights of non-tradable and tradable inequality made from Dual ownership structure , lack of credit based on the management of listed companies, the disfunction of market to evaluation the performance of listed companies and other problems has become a serious chronic disease to the development of china's stock market and list company. In market's requirement and suggestions of many economists, the government officially launched the reform of the stock market Circulation - called "full circulation reform." Solving the equity division is the most far-reaching act on China's stock market since the establishment of a reform measure. The significance are even no less than the creation of China's securities market. The properly resolved of share split will lay a solid foundation for the healthy development of China's securities market. With the success of the reform of circulation, it is gradually achieving the goals we have set, the positive effects of reform is also shown. The full circulation reform recycles China's capital market in system level. China's capital markets are fundamentally change the "declining" to the development of China's capital market and inject new impetus to it. It fully reflects the changes in the power system. However, as the full circulation reform advances, a number of new legal problems have become increasingly more prominent, such as the supervising of listed companies, the acquisition of listed companies, the innovation of finance derivative products , non-tradable shares of the various commitments and other aspects of the law are facing some new problems.Since the full circulation reform is the re-allocation of interest,there will be inevitable fiercely conflict of interest between the different entities, This will involve tradable shares, especially among particular harm the legitimate rights and interests of the minority shareholders. Where is damage there is remedy . The law have to provide not only private remedy,but also have the ability to provide public remedy , which currently reform process basically not involved. It's a necessary and pressing task to improve the legislation for the problems of full circulation reform .In the legislation perfect of substantial law , we need to focus on detailed provisions of the tradable shares' right and obligation, particularly protecting the interests of public investors after the reform. We should try our best on the standardize management structure of the companies, the transfer of non-tradable shares, the reform program and the selection of voting procedures, the disclosure of information, the intermediary's rights and obligations legal liability and regulatory measures for the system operable standards .so that the legal right to protect securities investors more fully, complete, and truthful, accurate and timely. Improving of the Procedure law, we should further regulate our securities' class action mechanism, compensation mechanism for securities violations and shareholder derivative litigation. In addition, It should also use full-circulation reform as an opportunity to establish the securities arbitration system with Chinese characteristics.