A Study On The Regulation Of Cross-ownership

Cross-shareholding, originated in the United States, is a highly developed product of modern company economy. After reforming and opening up, advanced management experience has been introduced into our country constantly, including the cross-shareholding system. Encouraged by national policy, the cross-shareholding system is developing rapidly and becomes a universal phenomenon in the company area. But, at the same time, its drawback is also gradually exposed, which brings a potential crisis to the corporate management. As the company's important role in the modern economy, cross-shareholding system's drawback has also brought unrest to the healthy and stable development of the national economy. Unfortunately, Legislation for cross-shareholding, which is so inconsistent with the actual needs, can't eliminate the drawbacks. Therefore, theoretical studies and legislation on cross-shareholding are urgent.In the paper, the'cross-shareholding will be studied at the angle of literature analysis and comparison law. In addition to statement the basic attributes and the latest theoretical of cross-shareholding, main legislation modes in the world are analyzed. The aim of analyzing above is to draw a personal remark and suggestion on the legal regulation of cross-shareholding.This paper includes four parts, and the following is the framing of the article:The first part is a summarization, including the definition and three main features of cross-shareholding. Then, three main reasons of the appearance and the nature of cross-shareholding are brought up. At last, the article describes the types. The second part includes the affirmative and negative effects of cross-shareholding. The cross-shareholding can help corporations to maintain stability, resist a hostile takeover, establish a diversified business to achieve scale, financing flexibility. However, it also can inflate the company's capital, manipulate the stock price, and make the cross-shareholding company become a monopoly. Provide an entry point for the following legal regulations suggestion.The third part is the comparative investigation of foreign legislation. In this part, three main foreign legislation modes will be analyzed, and try to find the appropriate mode of regulation for our country.The last one, introduce the development of cross-shareholding in China firstly. Then, core part of this article, offer some detailed proposals for perfecting our country's cross shareholding legislation, and pointed out the reason.