Explorations In The Shareholder's Right To Learn The Truth

The modern model of company management is based on the separation of proprietary rights from management rights, which keeps the shareholders away from the management of the company. The information inequivalence between the company and the shareholders causes divarication and suspicions on benefits. The key to solving the problem is to deal with the relationship between the two properly and affirm the shareholders' right to learn the truth, and enforce their legal rights as investors. The only way to achieve mutual benefits of the shareholders and the company and create a harmonious developing environment is to eliminate the information inequivalence and ensure that the shareholders get the objective, overall, correct and true information of the company. So it is necessary to perfect the system of learning the truth of the company for the sake of the perfection of our law system and the construction of our harmonious society. This paper explains the definition, the nature and the subjects of the shareholders' right to learn the truth and discusses the measures which can be taken to achieve and protect the right while reasonably limit it, which will help to balance the benefits between the company and the shareholders.