The Study On Legal Mechanism Of Cross Shareholding Of Companies In China

The mode of operation of modern companies comes from the modern economy. With the development of economy, the cross shareholding of companies emerged. As a new thing, because its superiority had been confirmed by market quickly, so it won a place in the realm of the economy with great speed. In practice, the cross shareholding not only developed scale operation through strengthening and consolidating the union between companies, but also stabilized the company's operation business rights through improving its ability to fight the outside world. So, it made sense to the economic development positively. However, as many other things, the cross shareholding of companies is also a"double-edged sword". Although its short-term effect was very obvious, it also has exposed a lot of drawbacks if given overall consideration to the macro level. For example: the cross shareholding could cause a company's capital high apocryphally, insider control, forming monopoly easily. Therefore, although it play a role in promoting economic development, We also can not allow it to develop freely; Similarly, we can't prohibit it completely because of its own shortcoming .What we should do is to introduce a law about the cross shareholding of companies ,which is the most suited China's actual conditions. Not only will the law give full play to positive effects of the cross shareholding, but the law will also curb its negative effects, contributing to our economy better,faster,more stable development. However, now there is only some auxiliary system which could play a normative role in regulation about the cross shareholding of companies objectively, almost missing the direct regulation about it. Therefore, the study how to establish a sound legal system about the cross shareholding of companies makes important practical sense in China's current economic development, especially for state-owned enterprise reform.Therefore, from a legal perspective, combined with the status of China's economic development and the actual operation of the cross shareholding of companies, learned the legislative experience of the advanced Western countries, this text discusses how to further establish a sound legal system about the cross shareholding of companies. The text is divided into four chapters, and now the main structure of the article are presented below:Chapter 1 is"The cross shareholding of companies and its legal basis". Firstly, this chapter introduces the concept and several common classification of the cross shareholding of companies. Then, it explores the legal nature and basis of the cross shareholding, giving us a macro-understanding.Chapter 2 is"The pros and cons analysis of the cross shareholding of companies".This chapter makes a comprehensive and detailed analysis about the positive effect and the negative effect of the cross shareholding.Chapter 3 is"The comparative investigation of foreign legislation about the cross shareholding of companies". Summing up the legislation of the United states, France, Japan, Germany and Taiwan region of China, this chapter introduces three modes about the cross shareholding of companies legislation, providing a reference sample to the China's regulation about the cross shareholding of companies.Chapter 4 is"Perfecting legislation of cross shareholding of companies in our country". Firstly, this chapter explores the problems in the legislation about the cross shareholding of companies. Then, it discusses which legislation model is the most suited our country's actual conditions and puts forward specific legislative proposals on this basis.