The Legal Research Of Cross-Shareholding Among Corporations

With the further reform in China, the market economy grows rapidly. Cross-shareholding among corporations which used to exist in developed countries also emerges in China now. It is powerful and effective in making the corporation stable, promoting the corporation growth, enhancing the corporation competitive ability and preventing hostile merger and acquisition. However, it is also abused for violating the rule of maintenance of capital, leading the managers to get excessive power over the owners, disturbing the fair exchange in security market, and bringing about monopolization, and so on. The corporation law of the People's Republic of China was amended in 2005, but there is no provision for solving such problems, that's why this paper presents itself.This paper falls into four parts:The first part introduces the concept, classification and feature of cross-shareholding among corporations, then analyses its advantages and negative influence which it may bring about.The second part introduces different corporate features and stipulation in corporation law of different countries through comparing the corporate capital system and different centralization or dispersion of stocks among the Unite State, Germany, Japan ,China continent and China Taiwan.The third part introduces why China needs to build cross-shareholding system among corporations, meanwhile presents the problems existing in ruling cross-shareholding in Corporate Law of P.R.C.The last part gives some advice for dealing with cross-shareholding among corporations. We should enact relative laws and regulations on basis of different legislation principles for various corporations.