Study On Legal System Of Cross-shareholding Of Company

The circumstance of company cross-ownership is the embodiment of company system`s continuous innovation and development during the economy practice, but it also has two sides. Company cross-ownership happened firstly in advanced capitalist countries in middle 20 century, and those western countries did different system arrangement according to local country situations. The cross-ownership case happened between Guangfa Securities and Liaoni Chengda in 1999 was the first company cross-ownership law case in China. Since then, company cross-ownership happens more and more frequently in China`s economy life, and it also infiltrate into the aspects of economy in different ways. Therefore, on one side, the laws should not forbid the company cross-ownership. Otherwise, it will hurt the current economy system. On the other hand, the laws must put necessary limits on the company cross-ownership to reduce the disadvantages of the system.This paper has lagged behind China`s current laws in the relevant areas of Cross-shareholding companies be thoroughly study the legal issues, to a reasonable standard and actively guide the Cross- shareholding company in China`s economic practice and improve China`s legal system related. Make it compatible with the current economic development. China`s relevant laws and laws for the connection and integration with the developed countries to create conditions and space. The article is structured as follows:The first part is an overview, first defined the concept of Cross-share holding company, and introduce the development and evolution of the system. Then under different standards from the perspective of the different types of Cross-shareholding company for analysis.The second part of the Cross-shareholding company for a comprehensive role in the socio-economic value analysis. Dialectical thinking, from both the positive and negative aspects, the company`s assessment of the positive and negative effect of mutual shareholdings.The third part of Cross-shareholding company for the inspection. Other countries introduced the Cross-shareholding company, then on the existing legal provisions of the Cross-shareholding company for the assessment.Under Part four of the earlier study, with a number of practical significance to the Cross-shareholding company regulated system of the legislative proposals. Firstly, for the parent company holding shares; Secondly, Non-parent Cross-shareholding company for the legal regulation, the proportion of shares held by each other restrictions, restrictions on the exercise of the right to vote.The fifth part is the conclusion. Cross-shareholding company in China is inevitable in economy life. For the legal regulation, it is necessary to perfect the laws, besides, it is necessary to perfect the subsidiary system.