Research On Legal Regulation Of Company Cross-shareholding

Cross-shareholding of company refers to the especial economic form that two or more independent companys become each other's shareholders according to investment or agreement for the specific goal in order to affects each other.Cross-shareholding of company comes from 80's in our country and happens more and more frequently in china's economy life after twenty-one century. On the one hand,cross-ownership will enhance cooperation ameliorate interior environment and eliminate commerce risks;on the other hand,cross-ownership between corporations can lead to illusive growth of capital,distortion of corporate governance,negative influence to the rights of shareholders and rational development of securities business. The correct attitude of cross-shareholding of company in law is seek for the pattern which both can suppress its passive effecting and to be able to display its positive superiority.It is a pity that the law of our country dose not say anything about Cross-shareholding of company. "PRC Corporation Law" (1994) only refer to the company reinvestment which has no systematic regulations to cross-shareholding.2005 revision of the"PRC Corporation Law" regulate the independent shareholder system,the legal person personality denial system,relevant corporation and he trustee to company's loyal duty instead of the regulationg of company reinvestment.But our regulation of cross-shareholding dosen't work effectively.The overflow of cross-shareholding will destroy economic structure obviously.Lot's of scholar argue that cross-shareholding between companys lead to economic stagnancy of japan in 90's.The lack of regulation on cross-shareholding has became hidden trouble to our economic structure and corporation system.We should constitute our cross-shareholding immediately.The first part firstly probes the current widespread economic phenomenon of cross shareholding by two typical cases, and proposed cross shareholding should be regulated by stern provisions. Then the author review the scholars' research results on cross shareholding in recent years,and summarize the research methods of this paper.The second part, the conception of cross shareholding is defined ,the author explores the kinds of cross-shareholdings in detail, and distinguish several groups of the conception related, in order to clarify the theoretical connotations of cross shareholding.The third part, the author analyzes the positive and impact of cross shareholding to economic structure and legal systems, pointing out that although the cross shareholding has certain economic functions, but the negative impacts are more serious. The law should regulates cross-shareholding system.The partâ…£, the author studies the legislation relating to cross-shareholding in the developed countries, proposing legislative suggestion on cross-shareholdings in china,the act shoule make distinction on horizontal and vertical cross shareholding .In the conclusion of this paper,the author stressed need for regulation on cross-shareholdings, improving the legislation to promote the development of cross-share holdings science.